A Seller’s Market – What Does That Really Mean?

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A Seller’s Market – What Does That Really Mean?

It’s still a seller’s market here in Orange County and especially Mission Viejo.

It sounds like such a catch phrase to be “a sellers’ market” – everyone knows what that means.  At the risk of pointing out the obvious, here are 4  aspects of being in a sellers’ market that you might find interesting.

  1. In a seller’s market, your request for repairs can become a laughing matter.  As in, the sellers will laugh at your attempt to squeeze any work or money out of them.  The sellers may believe that they granted you a huge favor by selecting your offer from among many worthy offers they received.  They may even decline your request for repairs in order to incentivize you to cancel the contract.  Especially if the exact same model house across the street just came up for sale for $15,000 more that what you are paying.
  2. In a seller’s market, the seller is not prone to patience when you need more time.  They may deny granting you any deviations from the original purchase contract.  For instance, if you need additional time to complete your inspection(s), the seller may exercise their right to cancel the contract with you and move on to another buyer, rather than grant you an extension in the inspection period. And while you were dragging your feet on your inspection, the house across the street received five offers, all over the list price.
  3. In a seller’s market, the seller may even prohibit access to the house for you to make additional inspections or bring in contractors to give you quotes on the repairs the seller laughed at.  (See Item 1 above.)  While this strategy is clearly not in line with the sellers obligation to make the house available to you, they may go out on a limb and refuse access anyway.  Figuring that the likelihood you’d pursue legal action against them is relatively low.  It’s more likely that you might cancel the contract.  Which is fine with the seller, since they are likely to get more money from the next buyer, which most likely will be one of the four that didn’t get the house across the street.  Which they were willing to pay more for.
  4. In a seller’s market, it is tough to be a winner with VA or FHA financing, primarily because if the house doesn’t appraise for what you’ve agreed to pay, the seller either has to lower the price or cancel the sale.  Which is really tragic for our freedom-fighting patriots in particular.  Sellers are rightfully concerned about the appraisers keeping up with the upward trending prices.  Sellers place an incredible level of value on offers that are not contingent upon the appraisal, as it gives them the peace of mind that they’ll still get their money even if the appraisal comes in low.  Because the house across the street that appraised for $38,000 more than the sellers hasn’t closed yet, so the appraiser may not view that as a valid comp.

Yep.  It’s true.  This makes the seller’s pretty much the dodge ball champs, kings of the hill, and rules of the real estate universe.  At least for now.

I’m Leslie Eskildsen.  Just keeping it real in Mission Viejo Real Estate.  Your success starts with a phone call.

Call me. 949-678-3373

Text me.  949-678-3373

Email me. leslie@whatagentsfeartellingyou.com

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