Let’s just get to the point; it’s a seller’s market. In central Mississippi, average sales prices are up 27.7% and housing inventory is down 53.4% from 2019. Combine that with low interest rates, buyers are scrambling to buy homes.
Tips for Sellers:
· Make sure that your home is in good condition and has been cleaned and organized before you market or show the property.
· Even though homes tend to sell for more money in a seller’s market, it still helps to price your home fairly. If you set your asking price at or slightly below fair market value, you’re likely to attract more interested buyers. Some sellers choose to list their homes for slightly less than the assessed value in order to encourage a bidding war.
· Carefully review the offers you receive. Sellers are often so focused on choosing the highest offer that they fail to examine the financial strength of each buyer. Just because buyers say they’ll pay a certain amount for your home doesn’t guarantee they’ll actually be able to obtain those funds. Lenders will not allow buyers to borrow more than the assessed value of your home.
· For any buyers who require financing, you should ensure that they have been preapproved (instead of prequalified) for a loan. Preapproval guarantees that buyers will be able to obtain a loan for a specific amount of money, while prequalification does not. Also, be on the lookout for offers that include contingencies. Offers that include stipulations, like mortgage contingencies, home sale contingencies, appraisal contingencies and inspection contingencies, enable buyers to back out of sales contracts if certain conditions aren’t met.
Tips for Buyers
· Position yourself to act fast. If you hem and haw over a house you know you want to buy, you may find that it’s no longer available by the time you decide to make an offer.
· Get preapproved for a loan so financing is in order when you need it. It makes your offer much more appealing to the seller.
· When it comes to making an offer, keep in mind that you’re the one at a disadvantage. A seller’s market is not the time to try to push contingencies, concessions, specific closing dates or repairs. Focus your attention on what’s most important to you. If there are certain stipulations you want written into the contract, think hard about whether they’re worth losing the property over. If you can make an all-cash offer, you should. Sellers prefer buyers who are willing to pay in cash because they don’t have to worry about the deal falling through due to issues with financing.
· If you find that you keep losing out on the homes you’re interested in, be patient and don’t get discouraged.
If you have thought about selling your home, now is a good time. Give one of our agents a call.
Rodney McCoy | 601.383.1019 | rmccoy@rightsizerealty.com
Jamie McCoy | 601.259.0461 | jmccoy@rightsizerealty.com
Andrew Tyre | 601.842.4270 | atyre@rightsizerealty.com
Allen Wilson | 601.985.9231 | awilson@rightsizerealty.com
Paul Tyre | 601.709.9002 | ptyre@rightsizerealty.com
Dianne Nelson | 601.421.7094 | dnelson@rightsizerealty.com
References:
Burris, R. (October 13, 2020). Buyer’s Market vs Seller’s Market: Which is It? Rocket Mortgage. Retrieved from: https://www.rocketmortgage.com/learn/buyers-market-vs-sellers-market
Market Heartbeat (November 2020). Central Mississippi MLS. Retrieved from: https://cmr.realtor/media/3291/cmrmls_mmi_2020-11.pdf