Buyer's vs Seller's Market... What's the difference?

Buyer's vs Seller's Market
What's the difference?

Most consumers do not know the difference between a Buyer's market and a Seller's market, however they should!  There are various benefits and disadvantages for Buyer's and Seller's in both market conditions.  The principle of supply and demand will determines which market we are in at any given time. 

 

Buyer's Market

Let's start with a Buyer's Market.  Most consumers seeking to purchase a home would want to be in this situation.  This means the supply of homes are higher than there are Buyers.  As a Buyer, you have a better bargaining position because there isn't as much competition from other Buyers wanting to purchase.  When you submit your offer on a home, it is less likely there will be other offers on the same property unless it is priced below market, is the cream of the crop of the inventory or it just came on the market.

The demand for houses are down and the supply of houses are up.

The disadvantage for a Seller is their homes may sit on the market for a longer period of time while waiting for a qualified Buyer.  If you are listing your home during a Buyer's Market, a Seller should make sure their home is in the best showing condition to entice Buyers.

Some tactics Sellers can use to encourage Buyer's to want their home are by offering more money to help the Buyer pay for closing cost, paying all of the Buyers closing costs, buying down the Buyers interest rates for their mortgage and offering to include a home warranty, etc.  

Seller's Market

At this present time, we are in a Seller's market in my local area.  A Seller's market means there are more Buyer's looking to purchase a home than there are houses listed for sale.  

The demand for houses are up and the supply of houses are down.

If you are a Seller, this is the ideal market for you. This means the chances of getting multiple offers on your home are higher.  Because of this demand, you may get closer or exceed your asking price for the sale of your home. 

If you are a Buyer searching for a house in a Seller's market, be prepared to make a decision quickly if you see a house you like.  Many houses are going under contract within the first week of being listed.  This means many Buyers are offering their highest and best offer upon submitting their FIRST offer.  A Seller can be more selective in the offer they chose and not have to give up too much in order to sell their home.

So before you start your home buying/selling process, make sure you understand the market you are in.  By knowing your market, it will help you determine what type of offer you will submit and how much time you have to get your offer in if you are a Buyer or how much you will list your home for and what type of incentive you are willing to give the Buyer if you are the Seller.

Happy House Hunting!

Tabitha  Rector-Richardson
Broker, REALTOR®

email:  info@premierhomesmd.com
web:  www.PremierHomesMD.com

(443) 415-4215 cell
(410) 363-1535 x101 office

INTERNET vs REALTOR... Who wins?

I just read an article about the use of technology among the millennial generation.  Most millennial's have had the convenience of technology at their dispose their entire lives.  They cannot image life without it.  When I have conversations with my children about "when I was younger," it seems like we are from two different planets.  (I'm sure our parents felt the same way about us!)  The thought of using a stationary rotary phone is not something our children wish to even fathom.  Yes, when I was younger I had to ASK to use the phone!

So how does a Realtor or any professional fit into the equation when there is so much information available online?  You can learn to do just about anything with a little time and research on the internet.  I know because I also search online to find out why my car is making a certain noise, how to renovation projects, and new recipes to cook something different for dinner.  How do we compete with all of the information flooding the internet?

Is the internet helping our jobs or hurting us?  Some clients feel they have all the answers and want to challenge everything we say.  Have you ever told your client something and then an hour later they'll call and say, "I was looking online and it says I should...."  Does the millennial generation look to us as the EXPERT or just as the person who has access to show houses and write the contract because they aren't able to?  

Part of the problem may be some real estate professionals do not take the time to hone their craft so their seen as the expert and not the back up.  Real estate is an ever changing field and good Agents have to constantly stay one step ahead in order to be competitive and successful.  Right now the internet is a powerful tool that can be used to enhance your real estate career through the dissemination of good content to reach our savvy next generation of home buyers and sellers.  Blogging is a great way to provide relevant information to brand yourself as an expert!  Change is inevitable, so get with it or get left behind!

Tabitha  Rector-Richardson
Broker, REALTOR®

email:  info@premierhomesmd.com
web:  www.PremierHomesMD.com

(443) 415-4215 cell
(410) 363-1535 x101 office

Yup It's Tax Time Again Get All the Deductions You Can!

It's that time of year when some people have a love hate feeling with tax season.  For those that get refunds this may be a happy time, but for the many people who don't this is a dreadful time.  Getting yourself ready to meet with your accountant is the worse part for me.  I commend those who are diligent with keeping their paperwork and receipts neat and organized throughout the year.  If you are that tidy, this blog is not meant for you!  So for those who are like me, this is for you...

I feel most real estate professionals do not take advantage of all the many deductions we get to take as contractors, so I did some research and created this list of deductibles to use as a reference:

1.       Advertising expenses:  Internet Ads, Postcards, Website Fees, Newspaper/Magazine/Radio/Web Advertising, Commercials, Business Cards And All Other Materials Purchased To Market Your Business.

2.       Bookkeeping, Accounting and Legal Fees

3.       Business Gifts (Up to $25)

4.       Business Meals and Entertainment

5.       Vehicle expenses: Mileage, Depreciation, Car Insurance, Parking Expenses, Tolls

6.       Communication:  Cell Phone, Computer, Computer Software, Internet Access Fees, Landline

7.       Education To Improve Or Maintain Required Skills

8.       Home Office Expenses

9.       Insurance:  E&O Insurance, Health Insurance, Business Liability

10.   Interest:  Business Credit Cards, Business Loan Interest

11.   Office Expenses:  Rent, Utilities, Cleaning & Maintenance

12.   Office Supplies & Postage, Computer Equipment

13.   Professional Fee's and Dues:  MLS fees, Local Chamber of Commerce, Local Board Dues, License Renewal Fees

14.   Referral Fees & Commission Rebates

15.   Retirement Plan Contributions

16.   Subscriptions to Professional Journals

17.   Real Estate Franchise Fees

18.   Taxes:  Payroll for Employees, state and local business taxes

19.   Travel:  Business Conventions, transportation, lodging & Food

*Be sure to consult a tax professional and current tax code to determine if these are the appropriate deductions for your individual situation.  Author is not an accountant and is not providing tax advice to anyone.

Tabitha  Rector-Richardson
Broker, REALTOR®

blogs:  www.LifeAsARealtor.com
ActiveRain:  activerain.trulia.com/blogs/trector01
email:  info@premierhomesmd.com
web:  www.PremierHomesMD.com

(443) 415-4215 cell
(410) 363-1535 x101 office