Three Tips for Selling Your Home in a Transitional Market

When you are trying to sell your house, it's important to recognize which type of market you are in. There are two major types of markets in real estate, buyer's and seller's. The first advantages buyers while the second advantages sellers. However, in between these two waves, there is a transitional market. Selling your house in a transitional market can be confusing, but it doesn't have to be. Here are some tips to help you.

1. Figure out where the market is going and where it has been.

To successfully navigate a transitional market, you need to figure out where the market has been and where it is going. Namely, is it transitioning from a seller's market to a buyer's market or vice versa? Once you determine the direction, you will need to act accordingly.

For example, if the market is shifting to a seller's market, wait a few months before listing your house if you can because you're likely to garner a higher price if you wait until the market benefits sellers. Alternatively, if the market is transitioning to a buyer's market, price your house carefully, market it aggressively, and be ready to sell its most compelling features as if you were in a seller's market.

2. Be attentive to fair market value.

With buyer's or seller's markets, prices tend to go up and down precipitously depending on supply and demand. However, in transitional markets, prices tend to stay closer to their fair market value (FMV). That means if you have a recent assessment from the property tax assessor, from a lender, or from any other type of property-value assessor, you should take that price into consideration when determining what price to assign to your home.

Negotiations tend to stall during a transitional market, as neither the buyer nor the seller has the clear advantage, and as a result, you should just set the price at what you want. If you set it too high in hopes of getting more money, buyers may just find another real-estate option to explore, and they may simply overlook your property.

3. Work with a real-estate agent.

Finally, whether you are navigating a transitional market or a buyer's or seller's market, you should consider working with a real-estate agent. They can help you figure out the nuances of the market in terms of pricing. They can also help you market your property and connect you to prospective buyers.