If you’re thinking of buying or selling your South Lake Tahoe home, you’ve probably heard all sorts of terms used, and some of it might seem a little confusing. Maybe you’ve heard that it’s a “buyer’s market” or a “seller’s market.” But what do these terms actually mean and how can they effect your home sale?
Low inventory in the real estate market means greater demand for what inventory is available. If you are a home shopper in the South Lake Tahoe real estate market, you probably have been watching a particular price point only to realize that there is just not that much coming on the market. If you are selling your home, this is good news for you. As long as demand is higher than supply, you could find yourself poised to benefit from the market conditions. And just what benefits might you expect to see?
Benefit #1: Lots of Competition
If there are more prospective buyers out there pounding the pavement in search of a new home, you’re in luck; many of them could pass through your door, and they could even end up competing against each other. You might find yourself with multiple offers or see potential buyers face off in a bidding war. While there certainly are no guarantees, multiple buyers on the same property usually proves financially luctartive for property sellers. Recently I was personally interested in a property that was priced right…by the end of day one on the market, it had 5 cash offers on it. You can bet that those offers climbed past the reasonable asking price!
Benefit #2: Higher Returns
You are far more likely to achieve your asking price if you are priced right in the beginning and there are fewer homes on the market. Anxious buyers in need of a home are more desperate if they are worried that they might be outbid by another buyer. That doesn’t mean that you won’t see lowball or rediculous offers, those guys are always going to be on the scene. While you can’t know that the motivation of any particular buyer might be, chances are there are some buyers finding themselves in the position of needing to move quickly – especially if they’re already sold their current residence and need a new place to live…like…..NOW.
Benefit #3: Shorter Escrow Time?
For buyers you have been beat up by a seller’s market – tired of making offers, only to get spanked by another interested party – a quick sale might be their comfort zone. Particularly for buyers who have been house hunting for a long time to no avail, you might find that your home, fresh on the market, could get snatched up quickly. Lucky for you! This means less hassle for you keeping your home show ready as you worry for long weeks or months about whether anyone is going to make you an offer. I have a lot of kids and a life…keeping my house “showcase” is an impossible task! What a relief to finally be in contract and let your guard down!
Benefit #4: Sellers Can Shape The Deal
Less inventory in the South Lake Tahoe real estate market means that buyers are going to have to be flexible and accommodating if they want to win your home before someone else does. And this might mean that you have the upper hand when it comes to negotiation on the terms of sale – from selling contingent upon your own home purchase to letting repairs go on a home inspection. If you have more than one buyer waiting in the wings, you’re in a position to take the best offer available to you.
As with any market, the real estate market is highly variable by location, supply, and demand. Although we have not had a lot of weather is South Lake Tahoe, we have still seen a lot of people coming to town! They are on their bikes, hiking, and ….HOME SHOPPING! If you have been thinking of selling, this is an amazing time to put your house on the market! With both low inventory and low interest rates, it is bound to go well!