Overview
A seller's market means less than three months of housing inventory, giving sellers more leverage and typically a faster, higher-priced sale. Even with demand on your side, correct pricing based on comparable sales in your building matters, hiring an experienced local agent matters, and strong marketing (photos, video, 3D tours) still matters, since an overpriced or poorly marketed listing can sit even in favorable conditions. Watch for appraisal gaps too, since fast-rising prices can outpace what a lender's appraiser will support.
What Is a Seller's Market?
A seller's market is one where demand for housing outpaces supply, giving sellers more leverage and generally supporting higher sale prices than in a buyer's or neutral market.
Real estate professionals measure this using months of inventory, how long it would take to sell through current listings at the current sales pace:
Buyer's market: more than six months of inventory
Seller's market: less than three months of inventory
Neutral market: three to six months of inventory
In a genuine seller's market, sellers have more room to be selective about offers and can often price closer to, or above, recent comparable sales.
Pricing Your Condo Correctly
Even with demand favoring sellers, pricing still matters. Overpricing can scare off buyers and leave a listing sitting; underpricing leaves money on the table.
Research comparable units sold in your building, ideally the same line, or units directly above or below yours. Broaden the comparison to similar units elsewhere in your building and to comparable sales in your neighborhood. An agent who knows your specific building and neighborhood well can help set an accurate, well-supported price.
Hiring the Right Agent
An experienced agent who knows your market can price your condo correctly, position it effectively, and handle complications like a low appraisal without the deal falling apart.
Some agents will take any listing at any price just to add it to their portfolio, regardless of whether the number is realistic. Look for an agent who gives you an honest, defensible price recommendation rather than telling you what you want to hear. Interview at least a few agents who specialize in condo sales in your area before choosing one.
The Importance of Good Marketing
Even favorable market conditions won't sell a poorly marketed listing. Strong marketing includes:
- Quality photos
- Video walkthroughs
- 3D tours
- Thorough property details
- Building-specific information
- Social media promotion
- Targeted ads
If you're selling without an agent, avoid the common trap of listing with minimal photos and thin details. If you're working with an agent, confirm they're actually equipped for modern digital marketing; not every agent is, and a listing with weak photos or sparse information can underperform regardless of demand.
Handling a Lower-Than-Expected Appraisal
An appraisal estimates a property's market value and is typically used by the buyer's lender to confirm the loan amount. Even in strong markets, an appraisal can come in below the contract price, especially when prices have moved quickly.
If this happens, you generally have a few options:
- Negotiate with the buyer to pay above the appraised value
- Have the buyer cover the gap between contract price and appraised value
- Get a second appraisal that may come in closer to the contract price
- Lower the sale price to match the appraisal
If you receive multiple offers, favoring a cash offer can sidestep this issue entirely, since it's typically not contingent on an appraised value. Getting a pre-listing appraisal before you list is another way to head off surprises before you're already under contract.
