Buyer’s Market Vs. Seller’s Market
You’ve probably heard the terms “buyer’s market” and “seller’s market” in regard to real estate, but what do those terms mean? It’s really a simple concept of supply and demand.
If it’s a buyer’s market, that means that the number of properties on the market exceed the number of potential buyers. This creates competition among sellers, driving property prices lower.
The seller’s market is the opposite, as you can guess. If it’s a seller’s market, then there are more buyers than there are properties on the current market. This allows sellers to have more say in the terms of selling their property.
If you’re selling your home, it’s optimal to do so during a seller’s market, when inventory is low. There are many benefits to doing so, including:
The power of negotiation: Having the upper hand in the market often means that plenty of potential buyers will be knocking at your door. Several wannabe buyers may cause a bidding war, which can sometimes mean that you can choose which buyer you want based on which is most willing to accept your terms. Often, potential buyers ask the seller to share certain closing costs, but this happens less in a seller’s market.
Ask and you shall receive: This is a big one. If it’s a seller’s market, you’re most likely going to get your asking price. Finding the right home is sometimes a lengthy process for some, as they want to make sure they’re getting everything they want. Once a buyer finds a home that’s the perfect fit, they will probably do what it takes to close on it. Add a seller’s market into the mix, and the buyer may be thinking it will be quite some time that another perfect fit comes along.
Quick sell: People who are buying during a seller’s market know that they must act fast when it comes to putting an offer on a home. They are aware that there are many other buyers looking around, and they may have even lost potential homes due to procrastination. When buyers do make the decision, usually they want to close and move into their new home quickly. This good news for you, the seller, because that means less time keeping the property open-house ready, less anticipation and more time to focus on own plans.
The Sargent McDonald Team with Brik Realty is happy to speak more to you about your options when selling and buying property! Our team is customer-centric, we’re never “off the clock.” Feel free to click here and contact us today!