So, what is a “Seller’s Market”?
A seller’s market is when buyer demand exceeds available homes for sale; and thus market conditions favour sellers over buyers. As a result, rising real estate prices can be expected in a Seller’s market.
In Vancouver, market types are determined by the Sales to Active Listing Ratio (SALR), or the percentage of available listings to those that have sold.
The percentages that determine different markets are:
A Seller’s Market: 20% or higher SALR
A Balanced Market: 12%-20% SALR
A Buyer’s Market: 12% or lower SALR
How to be a successful Seller in a Seller’s Market:
When sellers have the upper hand, the belief a for sale sign out front will simply sell the property. While that might be true, you likely will not get top dollar for your home. You would be surprised at how many sellers leave money on the table in such an active market.
A skilled and experienced Realtor who knows how to maximize quality offers will help you achieve:
1. Ensuring the seller’s terms are met
2. Maximizing the number of offers with no or few subjects
3. The highest possible price for the home.
How to be a successful Buyer in a Seller’s Market:
1. Be prepared. Have your financing in place and deposit accessible.
2. Do your due diligence ahead of the offer date. This will reduce the number of subjects in your offer.
3. Include the deposit cheque in your offer. This will make your offer firm and binding and takes out any potential objection for the Seller.
Finally, whether you're a buyer or a seller, having a strong and experienced team of professionals for each step of the way will set you up for success.
