Buying and Selling in a Competitive Market

Nicole Smith Woodard
Published on April 5, 2016

Buying and Selling in a Competitive Market

Spring 2016: Wow! The Dallas/Fort Worth housing market continues to break records for the 4th straight year, and its strength has lead to a ridiculously competitive market for buyers and an easier market for home owners looking to sell.

Here are some top tips for those looking to looking to buy or sell in today’s competitive market.

Seller Tip: Know your property well and be honest with potential buyers

Sellers are in a position of strength in today’s market, and buyers will pay a premium for a premium property.  You don’t want to lose a potential buyer and a great deal if negotiations fail, and then have to re-introduce your property to the market. Make sure you know all the details and potential pitfalls of your property and fully disclose all issues with potential buyers. Address as many known concerns before listing whenever possible.  Here are tips on general maintenance items to explore this spring.  Because our buyers buy an option period, you’ll want to minimize any condition-related issues that might cause a buyer to terminate the contract.

Buyer Tip: Be ready to make a strong offer to close within 30 days (flexible possession is ideal!)

Be alert to property listings and ready to arrange a viewing as soon as something interesting comes up. There are lots of buyers looking for the same property as you, so when a great house is listed, if it’s in good shape and priced right, it will likely sell the first weekend at (or above) list price. There may even be multiple offers on the home. Serious buyers either have cash available or have already been approved for a mortgage.  They are ready to make a strong offer and close the deal quickly.  If you haven’t already secured your mortgage approval, Click Here to start the process with a very reputable lender in our area.

Seller Tip: Have an organized process for receiving offers

While there are industry guidelines on how to manage multiple offers, there is no specifi rule on whether to accept the first offer you receive or to leave your property on the market waiting for a more attractive offer. It depends on the time of year, the community, and other prevailing factors. Your real estate agent will be able to help you establish your strategy for generating multiple offers and managing them when they come in. In some areas it can be a great idea to jump on the first good offer you receive, whereas in other areas, it is best to wait and have more showings before reviewing all the offers you have received at once. For the most part, I recommend a listing and pricing strategy that launches a home on the market in a way that yields multiple offers.  In certain areas and price ranges, you’ll want to make the first offer work if at all possible.

Buyer Tip: Buying your dream home won’t be easy

It’s very rare that a buyer closes a deal on the first property they like and make an offer on. The process takes time and with lots of competition, you can easily lose out on a property if you don’t act fast or your offer is too low for the seller to accept. If you miss out on a home, it’s important to stay optimistic and keep focusing on finding the right property next time. Home buyers are often inexperienced; every home you see and every offer you make is helping you learn more about the market and become more comfortable with how the whole process works. Missing out on a property is not always a bad experience, as the home you thought was perfect a month ago does not seem half as suitable as the property you find a month down the line. In all the years I have been helping families buy and sell homes, it always works out exactly the way it’s supposed to. Always. Certainly it’s easier to say that when looking back — in the moment, it’s tough.  To quote one of my favorite artists: Thank God for unanswered prayers.   Your house will present itself to you, and you will be ready to pursue it with a strong offer the seller will accept.

Seller Tip: Study the competition and know your market well

A seller should know the market before they put their home up for sale. Many homeowners will spend a few weeks studying the other properties for sale in the area, and possibly even arrange a few viewings of neighborhood homes, before putting their home on the market. Once you are ready to sell, know your competition and consult with a real estate professional you can trust to help you price your property to receive the most attention from buyers. Pricing is not a science; it’s a strategy. Every property is different, but your agent should analyze your property inside and out relative to its the competition. Homes that are in good shape and price right will benefit from the pent up demand for homes in our area which will lead to a faster sale and a higher price.

Buyers and Sellers Tip: Prepare and stay alert

The housing market can be stressful for both buyers and sellers. In a competitive market, things can move along very quickly and both sides of the market need to be attentive if they want to successfully buy or sell a property. Sellers have the upper hand as they can put in weeks of preparation before entering the market, which I highly recommend. Buyers have to be on their toes and ready to react to listings and be prepared to make an offer and move as soon as they find the right property.

A competitive market is fast moving and can be very exciting for both buyers and sellers. Connect with a real estate professional you can trust to help you navigate this process.

 

About Nicole Smith:

I have been helping families and individuals of all ages move to, from, and around the DFW Metroplex since 1995. I believe our homes create the chapters in the story of our lives, and I am here to help my clients before, during and after their real estate transaction. The communities I proudly serve include Flower MoundSouthlakeGrapevineTrophy ClubKellerColleyville. If you’re considering buying a new home or selling your current home, contact me today for a complimentary consultation.

Buying and Selling in a Competitive Market
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