Sellers Market Negatives
In a “hot” Real Estate market like Denver, the “word” on the street is that “Its Great to Be a Seller”. Here is the fine lining to that comment. In this market what are some ways a sellers market can actually be bad for sellers?
I was approached by a Blogger for Trulia, Laura Agadoni and asked to weigh in on some of the issues that Sellers may have in a sellers Market.
What are some ways a sellers market can actually be bad for sellers?
If you are in a multiple offer scenario, sellers sometimes pick the offer with the most cash saving options. However, by not vetting these offers,
sellers may sit in a contract just to have it terminate 3 weeks later.Which can cause perception to buyer consumers of what is wrong with
Seller markets and hot markets combined, generate an influx of new agent and part time agents trying to get into the business. If you do not have an
agent that works full time in industry or at least if a new agent has access to a great mentor, the contracts can ruin a deal.
If a non seasoned agents (not meaning only years in business, but how many transactions done) write an offer or are on the listing side of
the arrangements, because of the high pace and demand of a sellers market. Details can be missed and or miss read. Putting sellers into a potential
issue later on the road. Be it while in contract or a law suit later on down the road.
It all depends on how the contract is written/agreed to that will protect both consumers in the long haul.
A sellers market brings out some of the “desperate” agents willing to take next to nothing to just get the deal. Seller then get a disservice as the
“expectation” is to just toss a sign it and it will sell. Getting a contract in a sellers market is not the hard part for a seller. Its making
sure they are protected, not signing multiple offers (yes this happens) and just hoping one of the buyers with drop, signing a deal that gives the
highest cash, but not paying attention to deadlines that can kill a deal (too far out, or unreasonable). Etc.
What do sellers do when the house sells fast, and now they are in a buyers’ market? And other problems sellers might
A lot of rent backs are taking place. And then struggles with finding a place. Additionally, if you don’t close or sell by the the time you are
offering your contract add an additional contingency that others may not have. There fore potentially not giving said seller the best competitive offer.
Selling their home and then having to move twice. Once to an apt or temporary home then once again to their new home.
In a sellers market, homes that were not the most ideal product ie off a busy road, needs a lot of work, will get listed for a aggressive price and due to some buyer frustration and desperation to find a home, will purchase the home and not due some of due diligence needed. So the then seller now buyer, can have potential to make a hasty choice rather then a educated and confident one. Make sure that there are some options available prior to listing, and come up with plan A, B, and C.
To read the article and see what other agent around the nation had to input just click HERE.