What is a seller’s market in real estate? Simply put, it’s a market where the number of buyers is greater than the number of sellers. When this occurs, home sellers tend to hold the advantage and it’s called a seller’s market. That advantage allows sellers to better control the contract process and terms of any agreement; buyers tend to be more flexible as they want to close the sale.
Months of inventory (months of supply) is often used to describe activity in a real estate market. The months of supply is the time it would take for all current inventory to sell at the current rate without new inventory added. There is no one size fits all number, but for the broad Atlanta area between 4-6 months supply tends to represent a balanced real estate market. Below that favors sellers; above favors buyers. It’s all about supply and demand; when demand is greater than supply, price and competition tend to increase. Buyers tend to act faster and be less inclined to negotiate; their goal is to secure the home and get it closed. This allows sellers significant flexibility when planning a sale and negotiating a contract.
Characteristics of a Seller’s Market in Real Estate
- More buyers than sellers
- Prices tend to be increasing due to competition
- Low volume of “distressed” homes
- Multiple offers and or over list price offers are seen
- Fewer days on market
- Fewer seller concessions
There are challanges for the buyer, that's clear but there are also cautions for the seller. The biggest mistake a seller makes in a market that favors them is not knowing how to win. Understanding when success has been achieved seems easy but many sellers blow it - and get greedy. That greed can result in a buyer walking away; while another might come along the next buyer will likely want to know why the prior deal collapsed. Food for thought, don't overplay your hand Mr & Mrs Seller.
There's much more to recognizing a seller's market in real estate. The Hank Miller Team explains it in detail, complete with charts, graphs and other data that your agent should be able to provide. The key to success is understanding the market when you're in it - and your best asset is an experienced, professonal agent. Don't settle for less!
The Hank Miller Team provides confidence to clients buying and selling homes in the North Atlanta Real Estate Market. Our unmatched sales and appraisal experience, relentless drive and ability to manage transactions allow our clients to make sound, decisive real estate decisions. We offer full time, full service, personal hands on attention and concierge level service every step of the way for perhaps the most important financial decision you’ll make.