When considering your entrance into the Huntsville real estate market, a very important piece of your home buying or selling process needs to be a clear understanding of which type market you are entering.
Three Market Types
There are 3 markets in general. Buyers, Sellers or Balanced and the Huntsville housing market is experiencing all 3 right now.
The type of market is determined by the Huntsville absorption rates, which is simply supply and demand. How many homes are on the market and how many have sold in the past 12 months. Let me explain to you what each market is and what buyers and sellers can expect.
Buyers Market: 7+ months of inventory
Sellers need to have their home presented “best in show”. Best in show includes price, location, and condition. There is nothing you can do about location. You can do everything with price and condition. Condition begins at the curb, continues inside and also includes needed maintenance, etc. First impressions are more important than ever in a buyers market. Buyers won’t give you a second chance. They have the “shiny object syndrome” as I like to call it…NEXT house please!
Buyers, this is your opportunity for a possible deal! Negotiations are more likely to go your way during a buyers market and more demands are typically met. IF the home is priced right, with all things considered, the sellers just may not be as flexible, with just cause. Remember…supply and demand. A well priced home is a demand and could sell quickly, no matter the market.
Sellers Market: 0-4 months inventory
Sellers, this is your opportunity to sell quickly and at top dollar. I always advise to still price to the market and make sure your home is showroom ready. Your odds of selling are much better and “typically” closer to ask. Typically, you don’t have to give in to demands. Remember, the Huntsville real estate market is climbing out of a clear buyers market in ALL areas and price ranges. Appreciation will come slowly, so appraised value needs to be kept in mind for buyers that require an appraisal for loan approval.
Buyers: Have your “portfolio” in order. Have your approval letter ready! Sellers (and sellers agents) are typically now requiring an approval letter with offers. If you find a home you feel fits perfectly, you may want to move on it a bit faster. It could sell quickly. Thinking of demanding they leave Uncle Franks hot tub that states in the MLS “Hot tub belongs to family member and does not stay”. Be prepared for a NO. Remember…it’s all about supply and demand. Sellers typically have the upper hand during a sellers market.
Balanced Market: 5-6 months inventory
A balanced market is a healthy market. Sellers can get a fair price and buyers can purchase fairly. Neither typically feels the anxiety of “winning” or “losing”.
If you haven’t noticed by now, I have used “typically” many times in this article. From experience, I can tell you that real estate is anything but typical
Find an agent that knows the market, understands the market and understands your wants and needs. An agent that will take the time to not only educate you on our local markets, but also listen and be by your side. Take time to interview an @Homes agent. Let us show you what really DOES make us different and how we DO put the consumer first…always!