Two factors create a competitive seller’s market. Those are low inventory, and strong buyer demand. We have been, and are experiencing this in the Walnut Creek, CA area. You are probably hearing this from friends and receiving realtor postcards that state how the market is behaving right now. If you are considering the sale of your home, it is probably tempting. If you are looking to buy, you are probably wondering what you can do to compete.
With such low inventory plus strong demand, the prices of homes are rising. In some Walnut Creek neighborhoods, we are seeing some homes close for $50K-$100K over the asking price. Commonly, these homes also receive more than one offer. Some of which will garner 10 or more!
While it may be obvious, it is still worth mentioning. We see a small amount of inventory on the market at any given time. Yet there are plenty of homes in contract. This tells us that many homes are being bought within a few days after hitting the market. Some of the transactions we’ve seen…wow those are some stories!
Many home owners would love to take advantage of the market we are in. Prices are going up, and they might be able to turn a profit. However, it is not as easy as throwing your home on the market and watching the magic happen. (We wish it was that easy!)
Sometimes it can be tempting to push the envelope on the asking price of your home. After all, you want to maximize the sale. Pushing the envelope on price is a dangerous game to play. And pushing those limits can often result in a lackluster sale where you’re not as happy as you could have been.
Price your home right, the first time
It is important to price your home right, the first time. We have written about that concept before, but it is worth bringing up again here. Pricing your home appropriately from the beginning sets the table for your upcoming transaction.
[Tweet “The market will always dictate the sales price of a home.”]
So often we see a home come on the market at a price that is blatantly higher than it should be and it ends up sitting there for an extended period of time. Buyers are commonly turned off when a home is over-priced, fearing a difficult transaction if they even gave it a shot. The result is a home that sits on the market a long time, giving the impression that something is wrong with it. Eventually the seller tries a price reduction, but by that time it will take a significant reduction to generate any interest. Also noteworthy, the home has likely been held open multiple times. Even after a price reduction it can be difficult to generate activity as interested parties may have already walked through it.
If you are considering “moving up,” from your current home to a larger one, or one in a better location, a competitive market can be a great opportunity. Remember though, competitive market means it can be challenging to find your next home. We have actually run into this with multiple home selling clients.
With that, when you are selling this is a time where you can get favorable terms in the sale of your home. As I said it can be challenging to find your replacement home in a low-inventory, competitive market. What we have seen lately is that some sellers are requesting a “rent-back,” with the sale of their home. Where they have more time in the home after the close of escrow to pursue their search for a replacement. Be sure to not try to get a “rent-back,” for too long as the buyers’ lender might then see the purchase as an investment and throw a monkey wrench into the buyer’s task of completing the sale.
Buyers are offering sellers other terms to get their offer accepted. Once you go into escrow, a quicker close can be beneficial to get the sale done. So we are seeing a lot of buyers tighten up their time frames on their offers to look more attractive to sellers. Some people are shortening their inspection, loan and appraisal contingencies if they are able to. They want to be easy to work with, and entice home sellers to pick their offer.
Walnut Creek, CA and the surrounding areas are experiencing quite the seller’s market right now. Homes are selling fast and over the asking price. It is an excellent time to take advantage of how our local market is performing.
Our team has over 14 years experience listing homes in our area and producing excellent results. We offer a free, no-obligation market analysis that helps you determine your home’s value in our current market. All you have to do is contact us, and we will put together your custom report.
You can request a free report about your specific Contra Costa market/zip code to see how the market around you is performing. Click below and either Matt or Steve will get you the report of your choice as soon as possible.
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