2019 Memphis Real Estate Trends

The Memphis real estate market  has been in a sustained recovery mode for a couple of years but there is still a shortage of homes for sale. So, now is a great time to sell your home. What might make 2019 a great year for residential real estate in our area? Read on to learn more.

Is it a buyer’s market or a seller’s market?

You may have heard the terms “buyer’s market” and “seller’s market” mentioned, but what do they actually mean? It’s important to understand whether or not your current area’s real estate market is considered a buyer’s market or a seller’s market because this will impact a variety of factors, including:

• Home Value
• Listing Price
• Amount of Time a Home is Spent on the Market
• Ease of Finding Potential Buyers

What is a buyer’s market?

A buyer’s market exists when there are more houses for sale than potential home buyers. A buyer’s market is beneficial for potential home buyers for several reasons. First, they have more homes to choose from. Also, buyers have more leverage when making offers, asking for concessions, and requesting repairs. In a buyer’s market, sellers who are not willing to compromise or cooperate with buyers tend to find their homes on the market longer than they anticipated or prefer.  And, in many cases, the longer a particular home is on the market, the lower the price will be when it does sell.

What is a seller’s market?

In a seller’s market, there are more buyers than there are homes for sales. This imbalance can lead to bidding wars, homes sold at listing price or above, and homes being on the market for shorter periods of time. A seller’s market can be inconvenient for future homeowners looking to find the perfect home, since homes in great condition can receive multiple offers in as little as 24 hours. For sellers, on the other hand, a seller’s market offers the potential for a quicker sale and a higher price.

Is it either a buyer’s market or a seller’s market?

The answer may be simple or complex. If, in a given real estate market area, the buyer pool is consistent in all neighborhoods and price ranges, then in a given time frame sales activity can be considered to be either a buyer’s or a seller’s market. However, it is rarely that simple. In most markets, some neighborhoods are in higher demand than others. And, similarly, in most markets there are a larger number of buyers in certain price ranges. Whether you are a buyer or a seller, it is important to know the current conditions in your neighborhood and price range.

READ MORE: Business is Booming for Real Estate Housing Market

Is Memphis in a buyer’s market or a seller’s market right now?

For some time, particular neighborhoods in the Memphis area have been experiencing a seller’s market. Homes are selling quickly, often in 1 to 30 days. In these areas, home values have been increasing. And, the trend is expected to continue into 2019.

"The inventory is low, buyers are involved with multiple offers, there's bidding wars on properties throughout the different areas in the city and the county and it's just a crazy market right now," said Sheldon Rosengarten of Marx-Bensdorf, REALTORS.

How do I find a real estate agent?

Many sellers and buyers already know one or more agents.  Regardless, however, for those who want to find an agent to represent them, there are two primary ways: ask family members, work colleagues, and other trusted acquaintances. Also, you may search for agents via the internet. Agents, and their credentials, may be found on their individual business websites, their firm’s website, Realtor.com, or other websites. While references and website information are helpful, ultimately a live conversation, either by telephone or in person is important. Ultimately buyers and their chosen agent need to communicate with ease and to have mutual trust. With both of these, the process will be smoother and easier.

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Affiliate Brokers vs. Brokers

An affiliate broker is a licensed professional who has completed the classes, exams, and other necessary education and training to receive his or her real estate license in a particular state. While an affiliate broker can conduct real estate transactions, he or she typically does not have the same level of experience or achievement as a broker. Brokers, to obtain their licenses, have practiced as affiliate brokers for a minimum of three years under the guidance of a licensed broker. They have completed additional education requirements

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A real estate broker is a professional who has chosen to further their real estate training and education in order to obtain a broker’s license. Real estate brokers can work as independent real estate agents, and they can also hire other real estate professionals, while real estate agents are required to work under a real estate broker.

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Should I use a real estate agent or list by house for sale by owner?

The decision to work with a real estate agent or to list your home for sale by owner is largely a personal one that can be influenced by many factors. If you are aware of real estate rules and regulations and feel confident enough to sell your home without the help of a realtor, you are well within your right to do so.

What are the advantages of using a realtor?

Many homeowners and future homeowners choose to utilize the services of a real estate firm or realtor due to convenience and peace of mind. Here are a few more reasons to consider working with a licensed realtor.  

Knowledge + Experience

A real estate agent offers a wealth of knowledge and experience a homeowner may not have. From connections with other realtors and real estate firms to years of experience listing, showing, and selling homes and creating legal documents, a real estate agent is able to smoothly and efficiently move the process of selling your home along. An individual without any real estate experience, however, will need to invest time and effort into understanding contracts, disclosure agreements, and more in order to represent their own best interests.

Availability + Access

Real estate agents have far more access to resources and tools that can aid in the selling process than individuals attempting to sell their homes. This includes access to real estate listings not visible to the public which allow your agent to “market” your home in order to increase interest, the ability to host open houses, a large social media following, and other tools that significantly increase your home’s chances of being seen by other real estate professionals and potential buyers. As a homeowner attempting to sell your home on your own, however, you must rely on your own to market your home to the public.

Security

One of the biggest disadvantages of listing your home as for sale by owner is the lack of security you may experience. While real estate agents utilize lock boxes to store your keys that can only be opened with a secret combination and/or digital access via a real estate app or portal, listing your home as for sale by owner means you’ll have to find a way to provide your keys to each potential buyer’s agent for each and every showing. This means you’ll likely have to take time away from work or personal tasks to meet agents each time a viewing is scheduled, which could be several times a day.

Peace of Mind

Working with a real estate agent also means you have someone looking out for you legally, financially, and emotionally. Your agent is invested in ensuring you get the best price possible while also working to ensure that all legal documents and transactions are law-abiding and beneficial to you. Your real estate agent will walk you through each and every step of the process, answer any questions you may have, and work to save you time and money in every way possible.

Save Time

One advantage of working with a real estate agent you may not have considered is the lack of time you’ll be required to spend preparing legal documents, communicating with a seller and/or his or her agent, scheduling showings, etc. Many real estate agents have a team of dedicated professionals working to help them, and you, through the process of buying or selling a home, which means far less to worry about on your end during a time when your stress level may already be high.

What are the disadvantages of listing your home as for sale by owner?

If you’re a homeowner considering listing your own home for sale, we urge you to reconsider. You may be led to believe listing your home on your own can bring you more profit due to a lack of real estate agent fees, but time and time again, we’ve worked with clients who ended up spending farm more time and energy on their own marketing costs and legal preparation than they expected only to be left wondering why their home does not sell in a timely manner. After all, if you’re left paying a mortgage for several months following the listing of your home, you aren’t saving money at all.

Marketing Costs

One of the biggest disadvantages of listing your home as for sale by owner is having to pay for your own marketing costs, including the cost of an MLS (Multiple Listing Service) listing fee in order to list your home on real estate sites such as realtor.com. While a real estate firm will cover the costs of marketing your property, including listing fees, photography fees, and more, you’ll have to pay for all of these costs out of pocket if you plan on listing your home for sale without the help of an agent.

No Realtor Lock Box

No lock box on your home increases the chances of burglary and theft from criminals who may be using for sale by owner listings online to gauge the value of the items inside your home, and it’s far more inconvenient to have to meet a potential buyer’s agent to hand off your keys each time you prepare for a viewing. A realtor lock box provides added security and convenience you won’t have access to on your own.

Energy + Effort

Speaking of convenience, working with a real estate agent is the easiest way to ensure your home sells quickly and that the process is completed as efficiently as possible. Listing your home without the help of a professional means you’ll have to educate yourself on the real estate transaction process to ensure you do your due diligence in preparing contracts and legal documents. In much the same way that it’s not recommended individuals represent themselves in a court of law, an individual attempting to sell their own home may be unable to adequately prepare counter offers, disclosure agreements, and other items as required by law.

Realtors Near Me

If you’re ready to work with a real estate agent, contact our team of experienced brokers and realtors today. Our firm has 150 years of experience serving the Memphis area, and our team has the access, connections, experience, and willingness you need to sell your home as quickly as possible.