Are you ready to work with a real estate agent to buy or sell real estate in the Manhattan area in 2021? Any experienced agent will tell you that buying during a buyer’s market and selling during a seller’s market is the best way to get a deal and make the most of your money. However, it is still possible to conduct a successful transaction if you are buying during a seller’s market and vice versa. Being educated about the two different types of markets and how to shift your behavior to respond to both is the first step in making a smart real estate decision.
Here’s what you need to know about Manhattan’s current market and what that means for both buyers and sellers.
What is a Buyer's Market?
A buyer’s market occurs when there are more homes for sale on the market than there are prospective buyers for them. This is good news for buyers since there will be less competition for condos for sale in Chelsea, and the sellers of properties are generally more open to negotiation. Buyers can also take more time to look at properties and make a decision than they could in a more competitive seller’s market. Bidding wars are not as common in a buyer’s market, and sellers often accept contingencies in order to complete the deal. In a buyer’s market, homes tend to sell more slowly than in a seller’s market, and buyers can be pickier about finding the perfect home.
What buyers should do in a buyer’s market
- Take your time. You can afford to be patient in a buyer’s market and wait for condos for sale in Chelsea that you really love to come on the market. You can also take a bit more time to decide if you are ready to make an offer on a home and to get your paperwork together.
- Make plans to negotiate. Sellers are more open to negotiation during a buyer’s market. Not only will they likely take a lower number than their asking price, but they may also agree to pay part of your closing costs or make repairs to the home.
What sellers should do in a buyer’s market
- Work with a Chelsea real estate agent, professional photographer, and videographer to create high-quality marketing materials and virtual tours of your home to entice potential buyers.
- Make pandemic-friendly renovations or repairs to make your home competitive.
- Be prepared for negotiations and stay open to reducing the price or making other concessions to get your home sold.
What is a Seller’s Market?
When there are more prospective buyers than homes on the market, a seller’s market exists. During a seller’s market, inventory is low and competition for that inventory is high. Sellers definitely have the advantage in this type of market. If they are listing condos for sale in Chelsea, they can be more selective about who is allowed to see the property, and they can stay firm on the asking price. During a seller’s market, bidding wars between prospective buyers are common, so those interested in purchasing should work with a Chelsea real estate agent to increase their chances of getting the home they want.
What buyers should do in a seller’s market
- Make sure they are ready to move quickly if their offer is accepted. Sellers will be unlikely to accept an offer contingent on selling your home, so it should be already sold, or you should have plans to rent it out once you make a purchase.
- Be prepared. Have all your documents in order before you make an offer, including a preapproval letter from your lender. Many sellers won’t even consider an offer from a buyer who is not preapproved in a seller’s market.
- Don’t wait. Unlike in a buyer’s market, where you can take your time and be patient, you need to act fast in a seller’s market. If you find a home that meets most of your needs, don’t wait to make an offer. Homes routinely sell within a few days of listing, so you have to act fast.
What sellers should do in a buyer’s market
- Don’t jack up the price. It’s tempting to raise your asking price in this type of market, but it’s a bad idea. When you list it at a competitive price, you’ll be more likely to drive traffic to the listing and sell it quickly.
- Have a plan to move. If you list your home, it’s quite likely you’ll have an offer within days from someone who wants to close within a month or two. Have a plan regarding where you and your family will move if you haven’t already purchased a new home.
- Get ready for a bidding war. In a seller’s market, bidding wars between prospective buyers are common. Work with an experienced Chelsea realtor who can help you handle these situations and ensure you accept the best offer.
- Prepare for bidding wars. Though bidding wars are exciting, they are also stressful. Be prepared for this possibility and work with a realtor who can handle the process successfully.
Is Manhattan a Buyer’s or Seller’s Market?
Unlike many areas of the nation, Manhattan has recently turned into a buyer’s market. This is largely due to residents moving out because of job losses or relocating to less expensive areas where they can work from home. With more inventory on the market than prospective buyers, this is good news for those looking at condos for sale in Chelsea. Less competition means you’ll be more likely to find (and be able to buy) the home of your dreams — and you might even be able to get it for less than the asking price.
Whether you want to buy or sell property in Manhattan, working with a Chelsea real estate agent is the best piece of advice in any type of market. If you’re ready to make a move in 2021, schedule a meeting with one of the experienced agents on the Mackay Dixon Team to ensure your transaction is a success.