It’s a hot real estate seller’s market, but motivation is a key factor.
Since 2009, the real estate market has gone from a slow crawl back from the depths of the recession, to a surge with prices continuing to rise here in the Santa Clarita Valley. 
According to the Southland Regional Association of Realtors, the median sale price of single family homes in the Santa Clarita Valley has risen 5.6% from July 2019 to July of this year. Add a 48% drop in the number of available homes for sale year over year along with mortgage rates hovering at around 3%, and you might guess how well things are turning out for Santa Clarita Home Sellers!
Do Santa Clarita Sellers Hold All the Cards?
For the most part, at the moment the answer is yes…or at least a QUALIFIED yes. As stated above, low inventory and historically low mortgage rates are currently driving real estate in favor of home sellers. Known as a “Seller’s Market”, this means that if you’re considering putting your home on the market, there is a good chance it will sell quickly. Here’s another statistic for you: There is currently less than a one month’s supply of available homes for sale in the Santa Clarita Valley.
What does “supply of homes” mean? The simple answer is that the homes currently available for sale statistically will last on the market for less than 30 days.
You may “hold all the cards,” but it doesn’t mean you can take advantage of the market!
In a real estate market such as this, some Santa Clarita home sellers tend to ignore the trends offered in a Fair Market Analysis of their property, which is a very big mistake. Remember, property values are based on what the market will bear. More simply put, they’re based on what buyers are willing to pay. The old adage still holds true even in these times: Overpricing your home may force it to sit on the market longer than it should while other comparable properties are selling all around you.
Price Your Home Competitively
To some home seller this may sound counterintuitive, but statistics (and basic logic) have shown that pricing your home competitively in line with the fair market value of similar homes in your neighborhood development or area will drive more buyers to your door. As a result, you may benefit from a few results, such as:
- Receiving multiple offers
- If no offers, you’ll receive feedback from potential buyers and their agents as to why they didn’t choose your home, and you can react and adjust accordingly.
Why is pricing your home competitively so important?
Competitive pricing has the potential positive benefit for sellers of competitive bids from buyers. Multiple offers put the seller in the proverbial driver’s seat when it comes to the negotiation process. Remember, as a home seller you have three options when an offer comes in:
- You can accept the offer.
- You can reject the offer.
- You can counter the offer.
Also remember that your listing price is not set in stone, and can be the starting point up…or down! Pricing too high will almost guarantee lowball offers, while pricing at (or even slightly below) fair market value will almost guarantee multiple offers. Many agents that use this strategy with their seller have remarked that some of their listing have received over a dozen offers and final acceptance over above the original asking price.
While it’s not a guarantee, it most certainly gives the Santa Clarita home seller an advantage in this market.