Home in Houston Texas

What is a Seller’s Market

If you’ve seen any Texas real estate news over the past year, you might have seen the term “Seller’s Market” popping up over and over again. But what does this term mean, and more importantly, what effect does this have on Greater Houston Area home sellers and home buyers? 

The term “Seller’s Market” is used to describe a real estate market where there is a shortage of homes for sale resulting in home seller’s having greater pricing power. Generally, when demand exceeds supply homeowners can expect to receive multiple offers and the high demand can drive up prices resulting in bids that are well over asking price. 

Nationwide, housing inventory is at one of the lowest points its ever been and prices are at their highest since 2004 – in large part due to historically low mortgage rates. This type of market presents unique considerations for both buyers and sellers, but with a little advanced preparation both parties can come out on top. 

What Does a ‘Seller’s Market’ Mean for Homeowners?

For Houston Area homeowners, this means that now is the perfect time to sell your home! If you’ve considered making a change or wondered how you can best capitalize on your property’s value, a Seller’s Market is the perfect time to list your home and have the best chance of receiving multiple offers. 

If you’ve been in your home for five or more years, getting a home evaluation to see how much your home has appreciated is a great first step to understanding if now is the right time to make the change. A professional real estate agent can not only help you evaluate the current value of your home, but can offer you suggestions on how best to present, market, and list your property to get the best results. 

What Does a ‘Seller’s Market’ Mean for Home Buyers?

For Home Buyers, a Seller’s Market might seem a bit intimidating but with the right plan of action, you can still purchase the home of your dreams. Being prepared is the number one best course of action when you’re dealing with a highly competitive market, so make sure that you’re pre-approved ahead of time and take into account potential bids that may be over asking. 

Homebuyers should be ready to move quickly on a home that meets their needs and make an offer as soon as they feel comfortable. Having a real estate agent that knows the moment a home within price range hits the market and can negotiate competitively on their client’s behalf will help get Buyer’s bids to the top of the list! 

In a multiple-bid situation, sometimes a personal touch can help. Writing a letter explaining how much you love a home or introducing yourself and your family can sometimes help a bid stand out in a saturated market. 

What Should Homeowners Do During a Seller’s Market

The first thing anyone should do is have their home evaluated to see how much it may be worth. If your last home evaluation was more than a year ago this will be especially beneficial, as home prices in the Greater Houston Area have increased by more than 12% in the past year!

Once you know your home’s potential value, a real estate professional can help you list and market your home and evaluate multiple bids to find the best offer. Having a strong negotiator on your side that knows the ins and outs of real estate contracts and what additions can add value to an offer is crucial during this part of the process. 

Although a Seller’s Market will be beneficial to anyone trying to sell their home, Seller’s Markets are especially beneficial for homeowners with unique homes or homes that may have struggled on the market before. The increase in demand and viewings will provide the best possible chance of helping these homes find the right new owner at the right price. If you’ve struggled with putting your home on the market before, now might be the time to try again. 

If you’re interested in seeing how much your home might be worth, give my team a call! One of my agents will be happy to discuss your home’s current value, home prices in your neighborhood, and what your options might be for putting your home on the market.