A San Diego Buyer’s Guide to Navigating a Seller’s Market

By and large, there are two types of real estate markets: a buyer’s market and a seller’s market. A  buyer’s market is when there is a high inventory of homes on the San Diego market and not as many buyers. When this happens, buyers are in control because sellers are desperate to appeal to the buyer and get their house sold. Homes during this time drop in price as sellers compete to get buyers.

The second type of market is a seller’s market. That is when there are more San Diego buyers than there are homes on the San Diego market. The price of homes shoot up as buyers offer over asking price to try to win the house.

2017 brought strong seller’s markets to much of the country and 2018 is bringing the same thing. If you are a buyer during this time, there are some things that you will want to know to navigate your buying journey.

Know how to recognize a seller’s market

You need to start by analyzing the homes that have sold recently in the San Diego area that you are looking to buy. There are a few key factors that will show you what type of market you are in. Start by looking at the average days on market. If San Diego houses are selling in 10 days or less, then you are in a strong seller’s market. The longer houses are staying on market, the better it is for the buyer.

Compare what the final sales price is of a home compared to what the original asking price is. If you are in a seller’s market, you will notice that San Diego homes are selling for their asking price or over the asking price. If the area is in a buyer’s market, then you will notice that houses are selling for well below what the original listing price of the house is.

Tips for buying in a seller’s market

If you find yourself trying to buy a house in a seller’s market, you have an uphill battle. Here are some things that can help you.

Act fast – if you notice a house that comes on the San Diego market that you are interested in seeing, you need to schedule a showing right away. It is not uncommon in seller’s markets for houses to sell before buyers are able to get out to the house.

Make your best offer – When there is a shortage of houses on the market, you do not hold the power to negotiate. Chances are good that you will be making an offer on a house that is receiving other offers as well. If you want your offer to be accepted, you are going to need to make your strongest offer from the start.

Be prepared – Before you start looking at San Diego houses, make sure that you are pre-approved and you have your ducks in a row. Make sure the seller knows that you are willing to move quickly on scheduling the appraisal and inspection.

Buying in a seller’s market can be more difficult, but it’s not impossible. Being prepared and responding quickly will help you to stay on top of the competition. Know what you are looking for and act fast when you find it.