Sellers Market: Thinking About Selling A Luxury Property, It May Be Time To Put That “FOR SALE” Sign Up
Whether you’d like to sell a luxury property or possibly do so in the near term, knowing a little about the current market will be a valuable aid. Although many factors are often involved, including which island, neighborhood, price range and type of property such as condos, single-family residences, multi-family buildings, waterfront, or otherwise, a starting point can be discerning whether there is a buyer’s market versus a seller’s market.
BUYER’S MARKET VS. SELLER’S MARKET
In any industry, a Buyer’s market occurs whenever supply exceeds demand. For real estate, this means that there will be plenty of land and homes for sale or lease with a shortage of interested buyers. Prices decrease or simply stall in some cases, and properties remain listed and unsold on the open market for longer periods. In order to attract Buyers under these conditions, Sellers may lower asking prices or negotiate more willingly which gives leverage to the Buyer and hence the term ‘Buyer’s market”.
A Seller’s market on the other hand, is essentially the opposite and occurs anytime demand exceeds supply. Not only is there less inventory to choose from, but Buyers are the ones that must gear up to compete harder for the attention of Sellers despite soaring prices and slim pickings on negation terms. Overall, the Sellers are at a clear advantage during these periods and thus it is referred to as, you guessed it, a “Seller’s market”.
It’s important to note that a Buyer’s market or a Seller’s market may not apply to all types of available real estate. For instance, over the first quarter of 2021, homes on the island of New Providence ranging anywhere from $200k to $500k have sold at a modest pace but over the same period, there has been a steady demand for property ranging from $700,000 to $3 million and above. So for Sellers in The Bahamas thinking about selling a luxury home now or soon, it is definitely a Seller’s market and it may be time to put that “for sale” sign up.
FOUR SELLING TIPS IN A SELLER’S MARKET
While it’s true that a smile will grace the face of Sellers hearing this, there are still a few tips that get great mileage.
Prepare Your Property For Sale – Think about how others will view your property. If a Buyer can’t envision living in your home or how they intend to use the property, they won’t be as motivated to make offers. So, clean thoroughly, depersonalize and revitalize landscaping. Invest in home staging if possible. Properties that are normally harder to sell are also better received in a Seller’s market due to low supply and get traction after minor repairs or a modest refresh.
Keep A Fair Price – Shooting for maximum selling price may be tempting but keeping a fair and competitive price, will attract more interested buyers and ultimately offers to purchase. Buyers may also make strong offers above asking price to edge out other potential buyers.
Expect Multiple Offers – It’s important to weigh offers carefully. When multiple offers are presented, it can become challenging to determine which is the best option based on dollar amount, financing and other contingencies. Make a checklist of your top most wanted sale terms in order of importance to you. This makes it easier to compare offers side by side with the help of your real estate agent, giving you clarity and confidence.
Hire A Great Agent – Property owners selling in this market have a leg up but should still do their due diligence in order to get the best price possible. Choosing the real estate agent can be the most important decision that you make in a seller’s market. True, most agents can competently help facilitate a sale but you want the agent that will get you the best price possible. They also know marketing strategy, negotiation, working with buyer’s agents and even addressing appraisals, which can sometimes require reconsideration in a seller’s market or special considerations to address the gap between the appraised value and the sales price.
NO TIME LIKE THE PRESENT
A global pandemic became a launch pad to the current skyrocketing demand for luxury real estate in The Bahamas, making market conditions the ideal time to sell. With a bit of preparation and professional guidance such as the expert team at Better Homes and Gardens Real Estate, MCR Bahamas, you can get the best deal possible for your property.