How is Low Inventory a Win for Sellers?

The number of houses for sale across the nation is significantly lower than the number of active buyers in the housing market. Inventory has been at historic lows, but there is no shortage in the number of buyers.

As a seller, here are 4 ways the low inventory/high demand market can help you win if you’re ready to make a move.

1. Fewer Options – With interest rates still at historic lows buyers can get into a more expensive home right now for a similar payment as a cheaper home a few years ago. When you look at the fact that a buyer’s interest rate is usually locked in for 30 years it’s a smart time to buy, and buyers know that. This, in part, has caused us to have a rush of buyers wanting to buy a home causing a supply shortage.
2. Price – With so many people looking for new homes, homebuyers are frequently running into multiple offer situations and trying to find ways for their contracts to be accepted over another. Because of the competition home prices are being driven up as well as some buyers offering to pay for more items in the contract. This can potentially mean netting more for your home at closing.
3. Better terms – In this crazy seller’s market, we are seeing buyers being more flexible on terms in the contract that are typically paid for by the seller. Buyers may also be more willing to be flexible with sellers’ needs on move-out/move-in dates in order to get the home they love.
4. Days on Market – If your house is priced right and dressed right then it will sell quickly, especially in a seller’s market! The average number of days on market has gone down quite a bit because of supply and demand. Just because the market favors sellers right now does not mean that a buyer is going to jump on an overpriced and under-cared-for house just because it’s for sale. If you want your home to sell quickly then it needs to be priced well and look good too.

Remember, that just because demand is high you don’t want to put a bad product on the market. Selling your home is more than just sticking a sign in the yard. You will still need to declutter, make small repairs, and clean from top to bottom. This will help to sell your home quickly and for the most amount of $!