When it comes to house buying, you may hear the terms buyer’s or seller’s markets. But what do these mean, and what is the difference between the two? It is all about supply and demand, and knowing what the market is like will give you an indication of when the best time is to buy or sell a home.
What is a Buyer’s Market?
According to real estate in DeRidder experts at EXIT Real Estate Consultants, it is a buyer’s market when conditions are favorable for the buyer. This means that the supply of homes exceeds the demand. So buyers will find that there are plenty of properties to choose from and very little competition from other buyers.
In a buyer’s market, the price of homes tends to drop and homes will be listed for longer. Sellers will need to be doing what they can to entice buyers to their property, so they are likely to enter negotiations that may be more favorable to the buyer in a bid to get the sale.
What is a Seller’s Market
As you might imagine, a seller’s market is the opposite of a buyer’s market. In a seller’s market, the demand for properties is very high and far exceeds the supply. House prices go up and sellers have the upper hand when it comes to negotiations. It is not uncommon to see bidding wars for properties at this time.
When is the Best Time to Buy or Sell?
Obviously, the best time to buy is when it is a buyer’s market and the best time to sell is when there is a seller’s market. Unfortunately, we cannot always wait around for conditions to change, so is there anything you can do to tip the scales in your favor.
If you are trying to sell in a buyer’s market, you should try to make your home stand out. After all, if you can increase interest in your home, you might still get the price you want for it. Make your home as attractive as you can without spending a huge amount of money on it. This means taking care of minor repairs and decluttering the space. Remove personal items so that potential buyers can picture their own things in the home.
If you are attempting to buy during a seller’s market, there are things that you can do to improve your chances of securing the house you want. The first is to work with a good estate agent who will be able to act fast when new properties are listed.
Chain-free buyers will also have more buying power when it comes to negotiating contracts with sellers. If you already have a property to sell, it makes sense to complete the sale before you start the buying process on your own home. Consider moving in with family, or even renting for a couple of months, in order to get the property that you want.
What type of housing market it is will affect your negotiations, depending on which side of the fence you are on. In a buyer’s market, you have the upper hand when looking for a home, but the opposite is true in a seller’s market.
It is important to take your time when market conditions are not in your favor. Do not commit to something that you are not completely happy with just to get the deal done, unless time is of the essence of course. Remember, housing markets tend to fluctuate, so if you can wait a few months the scales might tip in your direction again.