Sellers: The Market is Yours!

The real estate market is constantly changing, so both buyers and sellers need to evaluate the market before they make lasting decisions. In response to COVID-19, houses for sale in Belvidere, Il and surrounding areas are undoubtedly impacted, and buyers need to be prepared to react quickly to new listings and be flexible when they are able to see the house in person. 

What is a Seller's Market?

Here's what we mean when we say it is a sellers' market: sellers have the power! The current inventory is limited compared to what it is usually like this time of year, so sellers should feel a sense of relief that they'll likely be able to unload their properties in a timely manner. 

The National Association of Realtors and Economists track markets based on how many months of inventory there is. To determine this number, they take the number of listings on the market and divide it by the rate that homes are selling per month. Typically, 5-6 months of inventory is considered a balanced market. Three months or less of inventory is considered to be a strong seller's market. For the past few weeks, northern Illinois has been under a 2 month's supply. This is an extremely hot market that benefits the seller! Sellers know that homes that are priced correctly are selling in a week or less. 

Tips for Buyers During this Time

If you're looking for a home during this time, don't panic. It's still very possible to find your dream home, especially with a skilled team like ours on your side. Here are some tips for buyers:

• React quickly to new listings and be prepared to make an offer if a home catches your eye. This means being prepared to go straight from your showing to your broker's office to write an offer. 
• If you also need to sell your home, consider a bridge loan. This will cost you $3,000-$5,000 but allows you to finance the purchase or your new home, then sell your old home.
• If possible, sell your current home and stay with family or friends until you can buy, as home sale contingent offers are tough to get accepted. 
• Don't make lowball offers. Put in an offer that is close to the listing price, or even a little bit over the listing price if you're able. 
• Don't muddy the contract with warranties, seller-paid closing costs or other freebies that will benefit you. 

Of course, turning to our team at Berkshire Hathaway Home Services Crosby Starck Real Estate is a great way to help increase your chances of finding your perfect home. Please reach out to us to get started!