Windermere Florida Realtors – Highly Competitive Real Estate Market – What To Do? If we talk about economic theory, we all know that a free market expands by competition.
It is due to increasing competition that today’s customers get more choices, improved service quality, and much lower prices.
As per Winter Garden Realtors, competition in today’s real estate market is extremely healthy and an important factor.
However, from a buyer/seller’s perspective, high market competition is a difficult problem to handle.
Have you heard terms like bidding wars or low inventory? These terms directly refer to a market condition that is highly competitive. While it is not easy to look out for the best property in a competitive market, the only way to succeed is to keep going.
But the question remains; how would you know if you are dealing in a competitive real estate market?
While a real estate agent may assist you to take in the fact, there are several indications of a highly competitive market.
Let’s have a look at some of the common indicators!
Bidding Wars
As per Windermere Florida Realtors, a bidding war is the primary indication of a highly competitive market. Bidding wars refer to a situation in which aspiring home buyers continue to surpass each other. They do it in the hope of making the highest offer.
The phenomenon of bidding wars is most commonly associated with properties in good condition, really good location, as well as a trifecta of the price.
Escalation Clauses
Do you think that the term escalation clause sounds like it comes from the North Pole? You might think that it will bring an advanced Christmas gift in the form of a dream house but that’s not the case. In fact, you should not forget that in a competitive real estate market, everything comes with a price.
When you insert an escalation clause in the bid, it shows your intention to increase your offer’s dollar amount, up to a particular point, to make the most of other higher bids. If you are wondering why would anyone do this? The answer is simple i.e. growing competition.
Sell Price is Much Higher than Asking Price
As per Windermere Florida Realtors, you can witness the basic rule of demand and supply by taking a look at today’s real estate market. What else could be the most obvious sign of a highly competitive real estate market than the properties which sell for much higher prices than the actual listing prices?
Lower bidders have no options in the competitive market.
No Inventory
You must know that you are dealing with a competitive market when you search a property online and everything is just snatched off the shelf. Housing becomes off-shelf instantly and you are left with nothing to choose from. The best way to find the best properties is to set up an alert on your relevant device so that you immediately get notified for the new listings.
To get more information about the real estate market, head over to Megan Dowdy Realty.
