Real estate professionals often speak of being in either a buyer’s market or a seller’s market. You don’t have to be any kind of subject matter expert to get a feel for what they’re talking about; generally speaking, a buyer’s market is going to be one where conditions are a little more favorable for those who are shopping for a property. A seller’s market, meanwhile, means things look rosier for those trying to get their place sold.
That’s the headline, but of course, there’s a bit more to it than all that. In this post, we’re going to take a closer look at what actually defines a buyer’s market. Then, we’ll list some of the implications, both for buyers and for sellers.
We hope this is helpful for anyone who’s looking to purchase a place of their own, but also for those who are wondering about the best way to sell a house.
Defining a Buyer’s Market
Again, the long and short of it is that a buyer’s market refers to any real estate market in which you’d rather be on the homebuyer’s side than the home seller’s side.
To be a little more technical about it, in a buyer’s market, supply exceeds demand. In other words, there are more houses than there are people looking to buy. This means that the buyer has plenty of options to choose from, while the seller will have fewer prospects but more competition.
In a buyer’s market, house hunters will generally have more wiggle room to negotiate and to get a better price, while sellers will have to work a little harder just to get interested parties through the door, much less close on a deal.
If You’re a Buyer…
With all of that said, what are some practical considerations for buyers in a buyer’s market?
- First and foremost, remember that there are many homes to choose from, and not as many people looking to buy, so you have a little more leeway to shop around and hold out for the house you really want. Don’t get too comfortable, though; it’s still very possible that a really attractive home will get snatched up immediately, especially if the price is right.
- In a buyer’s market, you have a lot more freedom to ask for a lower price. Remember, sellers likely won’t have as much interest, so don’t hesitate to try to negotiate a little.
- Be aware that many sellers will try to distinguish themselves by throwing in some extras, like offering you a home renovation allowance. And if you’re not offered these little perks, you can always ask for them.
If You’re a Seller…
For anyone trying to get their house sold in a buyer’s market, we’d offer these quick tips.
- It’s all going to come down to pricing. Remember, buyers are at the advantage, so you’re not in a position to hold out for top dollar. Price your home competitively if you want to get any takers.
- Curb appeal is going to matter, too. Your house hunters will have a lot of options to choose from, and if your place doesn’t wow them right out of the gate, they’ll have little incentive to seriously consider it.
- If you feel like you need to sweeten the deal a little, remember that you can offer things like home renovation budgets, flexible closing schedules, etc.
- In a buyer’s market, it will be especially important to seek the right information and to make a truly wise decision about the best way to sell a house. That’s where a SOLD.com report is invaluable. Make sure you claim yours!
Ready for Selling Your Own Property?
It’s helpful to be aware of what kind of real estate market you’re in. Whether you’re buying or selling, market conditions can have a big impact on your ultimate success.
And again, it’s also important to work with good information. If you’re selling your own property, make sure you have your SOLD.com report. In it, you’ll get an individualized recommendation for how to list. We encourage you to put in a request for your free home seller’s report from SOLD.com today!