If we were to choose one word to describe the spring real estate market, it would be "over-heated". The spring selling season has been full of bidding wars and huge price increases. If you know anyone who's bought or sold this spring, no doubt you've heard a few interesting stories about our crazy market.
But real estate is all about the seasons, and right now our over-heated spring market is giving way to a more balanced summer market. As the graph below shows, buyer activity decreases in June from the peak months of March, April and May. Plenty of real estate gets bought and sold in the summertime, but at a slower pace compared to the spring season.
How does this shift affect buyers and sellers?
If you're still planning to buy or sell in 2017, it's important to view the summertime as its own unique season. Competing offers and bidding wars will be less common this summer. There's still a lot of pent up demand for a limited supply of real estate, but the market will be a little less crazy in June, July and August.
3 Tips for Sellers in the Summer Market
Here are a few tips for sellers in the summer real estate market.
Tip 1: Price analytically, not anecdotally. You may have heard about the seller down the street who received 12 offers this spring and sold his home for more than $20,000 above the list. This one story might tempt you to shoot for the moon and choose your own astronomical price. Avoid the temptation to over-price based on one person's story of the spring market. Instead, do your homework by asking your real estate agent to perform a thorough market analysis for your home.
Tip 2: Don't skip steps when it comes to preparation. Media headlines might lead you to believe that all you need to do is stick a sign in your yard and name your price. The fundamentals still apply in a seller's market. Read our top 5 tips for improving your home's market value and mass appeal. These 5 tips will help you sell quickly and for top dollar.
Tip 3: Don't skip steps when it comes to marketing. Even in a seller's market you need strong marketing. Beautiful photos are an essential part of a great marketing plan. This article describes how you can make the most of your photos and maximize your home's exposure to the market.
3 Tips for Buyers in the Summer Market
Here are 3 tips for buyers in this year's summer market.
Tip 1: Renew and re-focus your efforts. If your goal is to find your dream home, then commit yourself to making it happen. You'll need to make sacrifices. For example, you may need to interrupt your work day and schedule an immediate showing when a new listing hits the MLS. On another day you may need to skip your afternoon work-out. The bottom line is you'll need to sacrifice routines and have a sense of urgency in order to succeed in this market.
Tip 2: Hire a strong buyer agent. You need a strong buyer agent or buyer agent team in a low inventory market. Have you hired an agent who's working proactively to find your future home? Does she have the skill and expertise to help you reach your end-goal? Having the right buyer agent can make all the difference in a seller's market.
Tip 3: Be proactive, not reactive. Don't wait for listings to come to you. Go out and find them. Both you and your agent need to be in action mode. The summer market offers a second shot at finding your dream home, but you'll need to work hard to make it happen.
Our blog is full of timely tips. Check out these articles for buyers and sellers.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred