A lot of terms get thrown around in real estate and some times it's challenging to really understand what it all means.
Right now, we are hearing a lot about the "Seller's Market". You may hear this from your neighbor, in casual conversation, on the news, or from your agent. As you nod your head as if you agree, here is what it really means for you.
Here is a little background: In Mountain Home, today, we have 30 active single family homes listed for sale on the multiple listing service. (Assist-2-Sell, Your Choice Realty has a few more in our office exclusives, but they are going fast!) We currently have 56 pending single family home listings in all of Mountain Home. These are under contract, waiting to close. In the past 90 days, 38 homes have CLOSED, Sold, found new owners. That is right on track for the average we had over the course of the past 12 months, 42 per month. Winter is a bit slower and Spring and Summer will increase.
If we keep the same demand, about 38 homes per month, we are low on inventory. Supply and demand say, if demand is high and inventory is low, prices will go up. In the last 12 months, our median closed sales were about $165,000. Our current pending have a median of $189,000. Does this mean that every home has increased by $24,000. NOOO! (But, I have heard that rumor!) Each home is different and you need a REALTOR® to help determine the value of your home. It means the average sales price in our market has increased that much in a year. This is great news if you are a seller! Alas, the "Seller's Market"
If you are a seller in Mountain Home right now, rejoice! You can expect a nice sales price, fewer days on market and maybe even some nice benefits. i.e. fewer closing costs requested from your buyer and more buyer tolerance for your out-of-date flooring. (Not mentioning any names! )
If you are a buyer, this is where it gets rough. Seller's know there isn't much competition out there. They are probably going to receive multiple offers on their property and they are hoping to get offers over asking price. You need to be prepared.
Get Pre-approved with a lender. REALLY. No Joke! You need this. Please don't say you will apply for a loan once you find a house. It does not work in this market. Make a strong offer. Listen to your agent when they tell you "This home is a great deal and won't last long!" This isn't a sales technique. This is reality. If you snooze, you will lose! We have been here before. Many tears are shed when you lose a home you fell in love with... and you may cry, too! Our insights into the market, negotiating skills, and tips for writing a great offer are invaluable.
If you need more info on buying or selling, please contact us today. We would love to help you navigate the process!