My husband and I thought we would take a little two-hour mini vacation the other day and sneak off to see a movie. In that short span of time my phone was vibrating inside my purse every few minutes. By the time I got out to the car and checked my messages, I saw that I had been emailed three offers on the home I had listed the day before.
For the first time in many years, bidding wars are happening, and Sellers are smiling as they get to pick the very best from several great offers on their home.
I’ve been selling homes here in Louisville for over 25 years, and I have never seen the kind of Seller’s market we are experiencing right now. Buyers who have been waiting for years for lending laws to relax a bit are ready to spend the money they have been saving to buy that next home. And they are out there in record numbers, while at the same time inventory is still low. Thus – a Seller’s market.
Just What Is A Seller’s Market?
For people who love statistics, you can look at your market’s absorption rate, which is a great way to figure out whether your area is experiencing a Seller’s market. The absorption rate is calculated by looking at how many homes sold in a certain month and divide it by the total number of homes for sale at the end of the month. An absorption rate of 20% or higher is considered a Seller’s market because homes are selling quickly and the number of months of supply is low.
But can it last?
The short answer is “No.” As soon as the daffodils pop up and the grass here in “bluegrass country” shows off it’s Spring splendor, FOR SALE signs will also begin to dot the landscape. The word is definitely on the street that NOW is a great time to sell, and Sellers with years of pent up frustration over the languishing real estate market are ecstatic about this very welcome good news.
But alas, this too shall pass. If the market becomes saturated with homes for sale, Sellers will have to compete once again for the Buyer’s favor.
Waiting Can Cost You
While it is true that people fall in or out of love with your home from the outside, waiting for that beautiful green lawn and pots of colorful flowers can cost you money. Because – right now – in a Seller’s market – Buyers don’t care if your grass is green. They just want a home.
I know this goes against what I will recommend later if you wait, because once it becomes a Buyer’s market again you will need to spruce up the outside of your home in order to compete. You can easily spend hundreds or thousands on landscaping later this Spring.
If you are in a position to sell now, get with an experienced Realtor who will price your home right, offer staging advice, provide quality photography and an aggressive marketing campaign, and get it on the market right away.
Your best chance for your highest and best offer may just be right now.