Market Conditions – Is it a Buyer’s Market or a Seller’s Market?

By
Real Estate Agent with Long and Foster Webber and Associates,480 W Jubal Early Dr #100, Winchester, VA 22601

A CMA (comparative market analysis) often includes a Days on the Market (DOM) value for each comparable house sold. When real estate is booming and prices are rising, houses may sell in a few days. Conversely, when the market slows down, average DOM can run into many months.

In a seller's market, you can price a bit beyond what you really expect, just to see what the reaction will be. In a buyer's market, if you really need to sell promptly, offer an attractive bargain price.

If You Price High, Set a Schedule for Lowering the Price

Some sellers list at the rock-bottom price they'd really take, because they hate bargaining. Others add on thousands to the estimated market value "just to see what happens." If you want to try that, and if you have the luxury of enough time to feel out the market, sit down and work out an advance schedule for lowering the price with your Realtor if need be.

If there haven't been many prospects viewing your home after three weeks, you may need to lower your list price. If that doesn't bring any prospective buyers, you may need to lower your list price again. Plan on doing that regularly until you find a level that attracts buyers. Make a written schedule in advance, before emotion takes over and you're tempted to dig your heels in.

Offering Incentives to Hasten a Sale

Sometimes cash incentives are as effective as lowering the price, especially in the lower price range where buyers may be "cash poor." You may offer to pay some or all of a buyer's closing costs and discount points required by the buyer's lending institution.

Review the inventory and health of the Winchester VA 22602 market by looking at the number of sold and listed properties.

To understand if the market inventory is growing or shrinking, compare the number of sold properties to new Winchester listings. If inventory is growing, the market could be trending toward a buyer's market. If inventory is shrinking, then it could be a seller's market.

Gauge the health of the market by comparing the number of standard to distressed listings. If the number of distressed listings is greater, the market could be unhealthy and more likely a buyer's market.

Sold: Properties sold that month
New: Listings that are new on the market
Distressed: Listings that are short sales, bank owned, or up for auction.
Standard: Non-distressed listings
The number of active listings in Winchester (22602) increased by 19.7% from the previous month.

The median number of days active properties have been listed is 82. This is significantly shorter than the national average.

The number of sales in September dropped by 76.1% from the previous month.

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Topic:
Home Selling
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Virginia Frederick County Winchester
Tags:
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Rainmaker
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Beth Paisley Realtor with Long and Foster Webber

Winchester Virginia 540-327-2813
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