How many times have you not found your favorite book or candy at the store? It may occur frequently as other people too want the same item. The demand may even make the store sell the same item at a higher rate.
This trend where the number of items available is less than the demand has also entered the College Station real estate market. This high demand and low inventory market has left properties lasting on the market for only a few months before they are sold, which is half the time a house generally needs to get sold on a stable market.
This leads to a rise in market prices and makes it difficult for buyers to find a home. There are thus both advantages and disadvantages of this type of market to the seller and buyer respectively.
Advantages to sellers
Low inventory markets are advantageous to sellers because:
- You don’t have to spend much time and money on the market.
- You will most likely be able to sell your home at its full value or even at higher rates.
- You have more prospective buyers than you can expect during an available inventory.
- As there are fewer homes for buyers to choose from, most houses sell. In fact, you can also command high prices that go over the list.
- Buyers usually buy your house in ‘as is’ condition, and forego any repair requests.
- Sellers can control the transaction. You can negotiate for shorter inspection periods and demand your buyers to waiver contingencies like appraisal and loan contingencies.
Disadvantages to buyers
This real estate market is nerve-wracking to buyers as homes just seem to disappear from the market when you are ready to buy them. You thus don’t have sufficient time to make decisions. The other disadvantages you face are:
- You have considerably low chances of finding a home.
- It’s practically impossible to make negotiations to reduce the price of the home to fit your budget as you have so many competitors for the property.
- Sellers can demand and quote rates as there are so many buyers like you.
- As sellers are in the commanding position, you cannot ask for concessions like paying for your buyer’s closing costs and for inspections.
- You cannot look for, or expect contingent offers as sellers don’t wait for buyers homes to sell in these markets.
- Don’t expect sellers to bend under any circumstance as they know there are other buyers waiting for their property round the corner.
Thus a high demand and low inventory of College Station real estate has its share of disadvantages and advantages. Its effects on you thus depend on whether you are a buyer or a seller in this market.