Sellers step up competition as housing inventory grows

Real Estate Matters – December 8, 2008.

Many real estate markets across Canada have large inventories of homes for sale right now, and this could impact you if you plan on selling your property. As your local Coldwell Banker® real estate representative will tell you, a market with a high inventory of listings means sellers have more competition to attract potential buyers and win offers. Many sellers are stepping up to the challenge.

Housing markets become more and more competitive as inventory grows. Sellers should be prepared to negotiate with potential buyers and not assume that a better offer will follow, or that another offer may be just around the corner. In the real estate business, the first offer is very often the best offer. And with so much to choose from, if a buyer’s offer is refused, there are many other options out there that are available to them versus coming back again with a higher price.

The inventory of resale homes will grow whenever more new listings come onto the market than homes are sold. This is called the sales-to-listings ratio, and the greater the number of listings becomes, the longer a typical home can be expected to stay on the market. Simply put, the more homes there are for sale, the more buyers have to choose from. It takes more time to look at all the options that are available and it decreases your chances of being the one listing they may offer to purchase.

As a seller, if there’s more competition from other listings, you’ll have to do a better job of attracting viewers both to your online listing, and to view your property if you’re going to win offers – and at the price and terms you want. That’s where the many online tools and resources of www.coldwellbanker.com can help. When you list with a Coldwell Banker sales representative, your listing can gain exposure on the world’s most viewed real estate brand web site.

Of course, this is just a general overview of principals that can impact local markets across Canada. Want to know more about how conditions in your community may influence the sale of your property? Your Coldwell Banker® sales professional has the inside story on real estate values and market conditions in your area and can tell you how to step up to the next level when competing for buyers.