Robyn Scharlach, Hill Country REALTOR, brokered by COMPASS

A buyer’s market occurs when supply exceeds demand. When there are 7 or more months of inventory on the market, we consider that to be "buyer's market". To put it another way, real estate inventory is high, and there are plenty of homes for sale, but there’s a shortage of interested home buyers. You can calculate the months of supply by dividing the total number of homes for sale over the number of homes sold in one month. For example, if you search in a neighborhood and notice that there are 30 homes for sale but only 10 homes actually sold last month, it means that there are 3 months of supply left in the market. What Happens In A Buyer’s Market? In a buyer’s market, real estate prices may decrease and/or homes stay on the market for longer periods of time. More than any other time, sellers must compete with each other in order to attract potential buyers and to be the "next home picked". (Think back to picking teams in grade school...you never want to be the last one.) Ideally, sellers will make price adjustments to gain an advantage in the market. They may also offer incentives toward mortgage rate buy-downs or make closing cost concessions to the buyer. Those sellers that really need to sell are much more willing to negotiate offers to prevent buyers from walking away. For buyers, buying a home in a buyer’s market is ideal – it allows you more choices in homes, meaning better all around deals. What creates a buyer's market? Oversupply of homes and/or undersupply of buyers can be due to many factors such as the local, state, or national economy, increased interest rates, large employers relocating away from an area, the time of year, and even election year cycles.

When you hear agents and news agencies talking about a "seller's market", that means that the seller has the current advantage in the real estate market. Basically, it is due to the laws of supply and demand. When fewer homes are available, the demand is higher. Generally speaking, when there are less than 5 months of inventory, it indicates that we are in a seller's market. You can calculate the months of supply by dividing the total number of homes for sale over the number of homes sold in one month. For example, if you search in a neighborhood and notice that there are 30 homes for sale but only 10 homes actually sold last month, it means that there are 3 months of supply left in the market. In a seller’s market, homes sell faster (often in just a few days or even a few hours) and buyers must compete with each other in order to secure the contract on a property. These market conditions often cause buyers willing to spend more on a home than they would have otherwise, meaning that sellers can raise their asking prices. Bidding wars are not uncommon. A seller’s market is not the time to try to push contingencies, concessions, specific closing dates or repairs. Focus on what’s most important to you. If there are certain stipulations you want written into the contract, think hard about whether they’re worth potentially losing the property over. Tips For Buying In A Seller’s Market Whenever there’s a limited supply of houses on the market and a wealth of interested buyers, time is of the essence. Here are some things you can do to when buying in a seller’s market: 1. Be sure your lender approval letter is up to date (less than 30 days old). Sellers will require that a buyer be "pre approved" to buy a home meaning that a lender has physically reviewed your income and debts to ensure that you are able to secure a mortgage. 2. Act fast. If you find your dream home during a seller’s market, you should act fast. If you wait to "sleep on it" you may find that it’s no longer available by the time you wish to make an offer. (I am not a pushy agent -not at all- but when in a seller's market, time is not your friend. 3. Know that you’re at a disadvantage. When it comes to making an offer, keep in mind that you don’t have the upper hand. Consider making an all-cash offer. If you can make an all-cash offer, you should. Sellers prefer buyers who are willing to buy the house with cash because they don’t have to worry about the deal falling through due to financing issues. 4. Be patient. Many buyers end up distressed during a seller’s market because they repeatedly lose out on homes they’re interested in. Inexperienced buyers caught up in bidding wars will often offer more money than a home is actually worth – or they feel comfortable spending – in order to get the home they want. Be sure to set a maximum in your mind before you make the offer. Don't get caught up in the "war" and continue upping your bid "just to win". 5. Don’t settle for anything less than what you want. On the flip side, some buyers will end up making offers on homes they otherwise wouldn’t be interested in because they’re tired of losing out. Remember, buying any property is a huge investment and often a 30-year commitment to a mortgage payment. Unless you have to move immediately, it’s a much better idea to wait it out and resume your home search after the market cools down.

I get this question quite often. Buying a home is likely one of the biggest financial transactions you’ll ever make, so having professional and qualified agent on your side is crucial. As your agent, I am here to ensure your best interests are protected throughout the process. Unlike on site builder representatives, who work for the builder and aim to get the best price for them, I work SOLELY for you. I can negotiate the best price for your new home as well as negotiate valuable incentives such as design center credits and closing cost assistance. With my expertise and dedication, you’ll have a smoother, more rewarding home-buying experience. Let’s make your dream home a reality!

Great question! My commission rates for selling a home typically range from 2.5% to 4%, depending on the level of service you desire. I offer a variety of service packages to fit your needs and budget, whether you’re looking for a more basic approach or a comprehensive marketing strategy to get the best possible price for your home. My goal is to provide you with exceptional value and results, ensuring that your home selling experience is smooth and successful. Let’s chat about what you’re looking for, and we can tailor a plan that’s just right for you!

Absolutely! I would be happy to give you general pricing information on your home. Pricing a home is an art, not a science! There are several valuation models that I review to formulate a quick estimate. However, if you would like a more precise estimate, I would need to schedule a few minutes to view your home in person to make note of any updates, additions, and both interior and exterior condition. It will only take about 10 -20 minutes depending on the size of your property. Call/text/DM me to schedule a visit!