If you’re thinking about entering the market as a Buyer or Seller there are definitely some nuances at the present moment to keep in mind. It is a “Seller’s Market”, put simply there is a surplus of Buyers in the market. In a healthy or balanced market, it wouldn’t be unusual to see 3- 6 months’ worth of inventory. In our current market we have less than a months’ worth of inventory. At the time I am writing this, there are less than 400 homes for sale in all of Albuquerque. In all of Valencia County we only have 85 homes for sale! Just for comparison, in a balanced market we would normally see 3,500-4,000+ homes, right now the total for our MLS (Multiple Listing Service – Southwest MLS) is 795. Now I know that is a lot of numbers I just threw out there, but what I am trying to illustrate is the lack of inventory.
But what does that all mean to you?
If you’re a Buyer, it means it is a very competitive market. When offering on a home you will most likely end up in a multiple offer situation, competing against 3 – 30 other buyers for the same home. Yes, you read that correctly… 30 other Buyers. You’ll probably have to offer on more than one home before an offer is accepted. List price is becoming more of a suggested starting point, but often the expectation is to exceed it, and by anywhere from 3% – 20%. When you’re exceeding the list price by that much, the strongest offers are covering an amount of the “over list offer price” in cash, out-of-pocket, which is in addition to the amount down and closing costs. There are a number of strategies which can be employed to aid in your success, but a preliminary conversation is definitely important to make sure the correct expectations are set, as you begin your search. As a Broker who has seen success with Buyers in this market, I understand the importance of being dialed into the market and the inventory, I know the right questions to ask to help you write the most competitive offer, and I am communicative and available.
If you’re a Seller, you will most likely be faced with navigating multiple offers. That means you need to have a Broker who understands your needs and can help you negotiate an offer on your preferred terms. I like to have conversations with my Sellers in advance of offers coming in so I can advocate for them before an offer is even received. I like to know what they are ultimately needing. Maybe that is a longer close time so they can find their new home, maybe it’s a cash buyer so they can close quicker, maybe it’s the first offer in, maybe it’s the highest and best offer. Every Seller is different and it isn’t always about getting the most money. Sometimes it’s about the other terms of the offer that are more important. Sellers are getting top dollar for the homes in this market. Getting top dollar for your home is one thing, but a great Broker will know the strategies to employ to make sure you’re maximizing that opportunity. There is a lot of value (sometimes thousands of dollars’ worth of value) in pricing, strategy and negotiation. I can certainly help on all of those fronts, and am always happy to have a conversation about what Selling your home might look like, when the time is right for you.
To sum all of this up, this market can be challenging for both Buyers and Sellers but with the right expert guidance it can certainly be a little easier. Wanna chat more?… give me a shout anytime!