If you’ve seen the headlines in the news lately, you’ve probably noticed that the real estate market is changing. This is not necessarily a bad thing. In many ways, the market is just slowing down from the past two years of recording-breaking numbers. Now, the market is shifting to a more balanced and healthy equilibrium. For both sellers and buyers, now is a good time to get back into the market. First, it’s important begin resetting market expectations.
Resetting Market Expectations for Buyers
Moving to a more balanced market has major benefits for buyers. Since before the pandemic, buyers throughout the country have faced relentless competition for homes. This is mostly because of the massive shortage of housing. With a slight increase in inventory, houses are beginning to stay on the market longer and competition is slowing. This is giving buyers with different loans the ability to submit a competitive offer that the seller will consider. Over the past two years, most winning offers were full cash offers or conventional financing. With less competing offers, there is also more room for negotiations and contingencies in a buyer’s favor. This includes inspections, repairs, closing costs and more.
Resetting Market Expectations for Sellers
For sellers during this shifting market, it’s important to note that the market is still strong. Although competition may be easing up slightly, homes are still selling quickly. Greater Nashville Realtors, ‘GNR’, reported that last month homes in the Greater Nashville area were on the market for 24 days.
The most crucial advice for sellers during this shift is to price their home accurately. Make sure the list price is comparable to other homes in the area by having a realtor run a CMA report. This will help avoid future price reductions and extending days or weeks on the MLS. Since there might be less power to negotiate, consider offering to pay a portion of the closing costs and for any repairs requested by the buyer.
Bottom Line
When buying or selling property, it helps to know where the market stands. Regardless of the conditions in your area, hiring a real estate agent is the best way to navigate the housing market. Whether the market is strong or weak, a knowledgable realtor will ensure their client receives the best negotiation strategy for their situation. Our team of experts can help you navigate the market with ease. Contact us today to schedule a buyer or seller consultation.
