One of the biggest questions people have about real estate is when’s the right time to sell? There are many deciding factors that go into the timing of selling a home, ranging from financial, practical, and personal needs. If you’re in the position to sell now and just aren’t sure if the market conditions are right, there are a few important indicators you can look for.
Here are the top three things to look for in the local Spokane market to know when it’s the right time to sell:
#1 Low Inventory Market Conditions
In the simplest terms, “low inventory” in real estate refers to the number of homes that are currently for sale; these homes are the available “inventory.” A low inventory market, like what we’re seeing in Spokane and surrounding areas right now, is great for sellers.
When you sell your home in a low inventory market, you have a couple of competitive advantages working in your favor. First and foremost, there is simply less competition from other sellers, as there are fewer homes on the market in general. If the number of buyers remains higher than the number of homes on the market, each buyer is likely to look at a higher percentage of all homes currently listed for sale. This is math-speak for saying that the odds of your home getting a showing with a buyer are better during a low inventory market like what we are seeing now.
And you not only have better odds of getting any one buyer through your door, but you also are likely to have a higher percentage of all total buyers scheduling a viewing. This means that you’re getting a bigger slice of the buyer pie seeing your home online and in person than you would have had in a high inventory market.
The more buyers you can get your home in front of, the better your odds of receiving an offer. But it’s important to remember that just because inventory is low and buyers have fewer options doesn’t mean this a good time to skim on preparing and presenting your home for sale. Holistic and professional home preparation paired with a thoughtful digital listing strategy is always the best plan of attack when selling, in any market.
#2 Highly Motivated Buyers
Interest rates are complicated and can affect the real estate market in diverse ways, but in general, when interest rates are low, buyers become much more serious. Currently, interest rates are low and have recently dropped by almost a whole percentage point, and buyers are eager to take advantage of this money saving opportunity. From a buyer’s perspective, having the ability to save on mortgage interest is a strong motivating factor. And if/when interest rates do go up, this can significantly diminish the buying power for many buyers, which puts additional pressure on serious buyers to buy now.
Highly motivated buyers are good for sellers in general, as they tend to come with fewer demands. In real estate terms, it’s possible that highly motivated buyers will ask for fewer concessions, and will present more competitive offers. With more buyers than homes for sale, you also have the potential to end up in a “multiple offer” situation, allowing you to select the best offer.
When the market produces more serious, motivated buyers, sellers also benefit in purely practical terms, too. When inventory is high, sellers tend to see more “looky-loos” who just want to see the inside of the house with little-to-no actual intent to buy. This can be a nuisance and a waste of time and energy for sellers. Getting your home in front of motivated buyers is one of the biggest challenges in selling your home, which is why the current low-inventory market makes this such a smart and convenient time to sell.
#3 Prices are Going Up
Rising prices are always a great indicator of a good time to sell. Currently, the market is shifting to a full-on seller’s market. In a seller’s market, we tend to see prices going up as there is a shortage of homes for sale and plenty of active buyers. From a seller’s perspective, high buyer demand and low inventory competition creates a favorable environment.
Sellers will want to take advantage of these increasing home prices sooner rather than later. Finding a real estate agent, preparing your home, and listing it are all tasks that should be started now in order to hit the seller’s market in full swing.
In addition to housing prices on the rise in Spokane, the low inventory conditions also means that sellers have more leverage when negotiating against concessions. It’s important to work with a knowledgeable and experienced real estate team that can advise you on what listing prices and concessions make sense in the current local market.
Buying a Home With The Real Estate Agent Spokane Team
The best way to sell a home in Spokane is to work with a real estate team who understands the local market and the listing and negotiations process. The Real Estate Agent Spokane Team is dedicated to informing and guiding sellers so they get the best offer on their home. We’d love to connect and discuss how we can help you list and present your home, from the initial consultation all the way through closing and purchasing a new home.
Carrie Meyer, Team Leader, delivers superior client care to those looking to buy or sell real estate. Our team works to educate and empower our clients through one of the biggest transactions of their lives by bringing a structured, process-driven methodology to bring consistency and clarity to a real estate transaction.