We've heard SO many people say, "There are SO few homes for sale!"
Yet, is that true?
We've witnessed selling prices rise, but is that because of a lack of SUPPLY or an increase in DEMAND or both?
Most importantly... WHY DOES THIS MATTER?!?
Today, we will present the data to uncover the true inventory status and discuss why this is very important to buyers and sellers alike.
Let's start with the inventory data:
The number of new listings in San Mateo (SMC) and Santa Clara (SCC) counties has been steadily declining. Not drastic, but a slow decrease. Looking at San Francisco county (SFC)... WOW! A huge increase in new listings in 2017!!
Why does this matter? There are probably a few reasons that are obvious to many and some that are less apparent.
If a seller is approaching the marketing believing that there is no competition for their upcoming home for sale, then it is very possible they will use the wrong marketing and negotiating strategies to get the best buyer and price. However, the seller and real estate broker/agent who understands the current market will compete for the best buyers and negotiate accordingly. We believe this impacts many aspects of a successful sale.
Let's look at one simple aspect, the offer date. The uninformed might pick a Wednesday at 1 pm to receive offers because it is a convenient day and time for them.
HOWEVER, the savvy seller/agent will know that there is competition; will research the other listings; discover that three other sellers have set that day as their offer date as well; and will strategically set an offer date before or after the competition.
Rather than have the buyers decided which of the four they will make their non-contingent offer (very common these days), the buyers can ALL write offers on the savvy seller's home for sale! SUCCESS!
That's just one example: Offer date planning based on knowing the market and the competition.
Likely results: More offers, thus improved odds of better buyers and a higher sales price.
Sure, there are more considerations to make regarding offer dates such as desired days on market, international marketing exposure, open house plans, the weather, major sporting/public event conflicts and more. Your real estate group can help determine what is best for your specific sale.
For the sellers out there, we hope that knowing the market impacts all aspects of your property preparation, marketing, negotiating and transitional planning! It's important to us and helped us sell a listing in San Mateo for 23% over the competition!
"But wait! I'm trying to buy?! How can I be a more savvy buyer?"
I'm so glad you asked!
We believe and experience that the more we learn regarding a market, the property, the seller's needs, the listing agent's techniques, comparable listings and the like... increases our advantage over the competition.
Let's talk specifically about buying in a market with a decent amount of inventory.
The obvious: For the buyer, all of the other buyers are competition. The buyer wishes there was no competition. The competition makes the buyer uneasy.
The forgotten: For the seller, the other listings are competition. The seller wishes there was no competition. The competition makes the seller uneasy.
A successful buyer uses negotiating strategies that focus on the seller's needs, wants and concerns! If a seller has mistakenly placed their home on the market thinking there is no competition, then they most likely will be unpleasantly surprised with all of the competitive listings. Therefore, the savvy buyer will make an offer that meets the seller's needs, present themselves as the buyer the seller would want, and removes the seller's worry about the competition. This might even be an offer made prior to the offer date.
"So make preemptive offers. Got it!"
NO! It is not that simple. Your real estate group needs to gain the knowledge we've discussed and evaluate the overall situation to advise the correct strategy.
Legal Stuff: Data was provided by MLSListings and is believed to be accurate, but not guaranteed. The information provided does not create any form of agency with the reader. Double check with your real estate professionals in your state and country for your specific situation.