In many markets across the US, there is a shortage of properties for sale. Demand does not currently match supply. This creates an interesting environment for buyers and sellers. Here is what the Massachusetts real estate inventory shortage means for buyers and sellers.
Low inventory fosters a competitive market for potential buyers. New properties for sale will will normally draw quite a bit of activity. Homes will get under contract quickly after multiple offers. In these conditions, expect listings to require above list price. What else does this mean for home buyers?
Home buyers need to be in a position to submit an offer. This means obtaining a pre-approval completed and the letter ready to include with an offer. After visiting a property, they will need to make decisions very quickly. Even one day can make a difference. Also, offers must be clean and with good terms. Sometimes you have just that one chance. Negotiating a discounted price is typically only possible if the property has been listed for an unusually long time frame and has no competing offers.
A Good Situation for Home Sellers
Sellers thrive in this type of market. It is strenuous maintaining a home in showing order, so fast sales make the process much. In multiple offer situations, sellers are also in a position of strength and may have the buyer of their choosing.
Sellers need to be cautious not to overprice a property in this type of market. Highest sales prices are usually gained by correctly pricing at the start. Overpricing can end negatively in this, and in fact any, market.
Sellers attempting to both sell and buy may struggle a bit. Although you might be able to quickly get the old property under agreement, it may take more time to locate a new property to purchase given the scarce inventory. Finding a buyer with a accommodating time frame will make a big difference. You might also want to use interim housing to give you more time to buy your next property.
What The Massachusetts Real Estate Inventory Shortage Means For Buyers And Sellers
Overall, what the Massachusetts real estate inventory shortage means for buyers and sellers is the usually quick selling process but a possibly lengthy buying one. Home prices will also be greater. It is critical to know the Massachusetts real estate market if looking to buy or sell. Also set reasonable expectations for both price and time frame. Connecting with a local agent will help you through the process.