Why is the Housing Market so Competitive? A Guide to Selling Your Home in a Buyer’s Market

why is the housing market so competitive

Selling your home is an incredibly stressful event in anyone’s life. Couple that experience with a competitive market, and things can quickly become overwhelming for even the most level-headed family. What makes a buyer’s market more competitive than a seller’s market? A buyer’s market is when there are more homes on the market than potential buyers. So while real estate inventory is high, there’s a lack of people looking to purchase homes. These unique circumstances give buyers power over the market, skewing negotiations and, ultimately, power in their favor.

Because there are so many available homes for sale in this particular market, sellers have to compete against each other to attract potential buyers. Unfortunately, this can quickly cause panic among sellers, fearing that their homes will lose significant value in the process. While it’s true that price adjustment is a part of selling during buyer’s marketing, there are still a considerable amount of options available to sellers. Therefore, it’s essential to be informed and realistic about the active market and how that will affect your home’s price. Additionally, consider your estimated timeline, as it’s unlikely that you’ll sell your home immediately in a competitive market. Of course, that doesn’t mean all hope is lost; however, preparing to sell in a tough market means equipping yourself with tools and information to help make your process a success.

Before You Decide to Sell in a Competitive Housing Market

As we’ve already discussed, selling your home at a competitive time like a buyer’s market can be an incredibly stressful experience. It’s essential to curb your expectations when approaching a buyer’s market with the intent to sell quickly and at your ideal amount. Part of this process is negotiating with buyers and agents and dealing with yourself and your family. If you’re unwilling to compromise on certain aspects of the process, it’s unlikely to prove successful. Approaching a competitive market with an open mind and flexibility is essential to selling your home and living contently with the outcome afterward.

Don’t be offended by lowball offers. It’s completely normal and understandable to have an emotional attachment to your home. We create lasting, beautiful memories with those closest to us in our homes. It’s important to remind yourself that you have to separate that emotional value from your home’s financial value. Entertaining lowball offers doesn’t make you a desperate seller or devalue the worth of your home. Making the most of requests in a competitive housing market is best to get your home sold. Negotiating low offers can keep potential buyers interested in your home and eventually lead to reasonable offers. Sure, buyers have the advantage in a competitive market, but effective negotiation can open an equitable path for both parties.

Get Help Selling Your Home from an Experienced, Reputable Real Estate Agent

People often want to avoid the commission necessary to hire a professional agent by going it alone. However, taking on a competitive housing market without the experience and expertise of a seasoned real estate agent is not advised. You need help navigating your local real estate market, negotiating tactics, and more. Choosing an agent to help sell your home increases the odds of getting a relatively quick sale at a more competitive price.

An agent will help you price your home competitively. Developing a winning pricing strategy with the assistance of an agent that knows your local real estate market is invaluable. You can decide which pricing is best for your home: market value, below market value, or above market value. Considering you’re likely selling in a competitive market, determining a price below market value will help attract potential buyers to your property. So don’t be annoyed or distrusting your real estate agent’s estimate. They have experience selling homes in your area and know what it takes to get people in the door.

Your real estate agent will help you determine a fair asking price based on sold homes in your area comparable to your own. Because agents have more experience negotiating sales than you, you’re more likely to get a competitive price for your home with their help. In addition, hiring an agent can further remove yourself and your emotional attachment from the process. Agents almost always have your best interest at heart, so trusting them to get you a fair price and a speedy sale isn’t much of a concern. However, consider the pitfalls of complex real estate transactions and paperwork that stump many homeowners looking to save a little money on commission if you aren’t convinced. Agents make the process easier by competently handling tasks and decisions that take the guesswork out of your hands.

Attract Buyers with Desirable Property Upgrades and Necessary Repairs

Being competitive in a buyer’s market means that your home has to offer good value for the price. Take a look at your home and compare it to others on the market. Make sure your home impresses by accentuating its best features, updating your home’s appliances and installations, and fixing anything that might deter potential buyers. It’s important to remember that your home competes with other homes in a highly competitive market. As the pool of potential buyers shrinks, you have to look for ways to make your home stand out from the rest.

It’s all about curb appeal. The first step to getting people in the door of your property — aside from an attractive sale price — is a beautiful home. Your home’s exterior is the first impression potential buyers get when visiting your property.

  • Tidy Your Landscape. Gardens are an excellent way to attract buyers, but uncut grass and overgrown flora can quickly scare off buyers. Ensure your garden, lawn, and trees are well-maintained. Landscapes that require too much maintenance can overwhelm potential buyers.
  • Add a Fresh Coat of Paint. Do you see paint chipping or peeling from your home? Repainting your home is a relatively easy and inexpensive way to reinvigorate its appearance. In addition, adding a fresh coat of paint gives the impression that the rest of your home is well-maintained, which could get more foot traffic through the door.
  • Do Some Cleaning. When was the last time your pressure washed your driveway? Another inexpensive way of revitalizing your home is appropriately cleaning its exterior. Rent a pressure washer to clean your drive, walkways, and other dirty areas. Wash your windows and remove years of grime before any buyers visit the home.

Selling your home is a huge life event for you, but consider the buyers on the other end. This is an equally important event for them, and they want to make sure they’re making the best decision. Stage your home as an investment that will last a lifetime. Consider making upgrades that extend the longevity of your home and make its next family’s life a little easier. Focus on practical upgrades such as new appliances, updating lighting fixtures, and high-performance windows that better insulate your home from outside weather conditions. Separating your home with updated features is a surefire way to secure a sale in a competitive market.

Selling a home is a massive undertaking in an ideal market, so it’s natural to feel overwhelmed and stressed in a competitive market. Instead, stay open-minded, hire an agent, and make your home competitive. Suppose you’re looking for ways to upgrade your home further. In that case, Monumental Windows and Doors offers elegant, eco-friendly windows and doors that bring energy efficiency and modern style to any home. Contact us today for more information about our products and how to find a dealer near you.