Buyer's vs. Seller's Market
I’m thinking of putting my house on the market this year. I sure hope this seller’s market lasts!
My husband and I have been looking for a bigger house for over a year. Maybe the swing to a buyer’s market this year will help.
What are these people talking about? They are referring to the current real estate marketplace and whom the market favors at this time – the buyer or seller.
During a buyer’s market there are tons of houses on the market waiting to be sold but only a few buyers shopping around. Sometimes the market stays this way for a long time. Sellers begin to get antsy and offer incentives to buy their homes. They may cut the prices, offer special financing or even gifts such as a new car with the purchase of the property.
A buyer’s market is a wonderful thing for the home shopper but not so much for the seller. It allows for the buyer to take proper time to inspect the property, appraise it and carefully think about the purchase before making an offer. And why not? There is no one waiting around the corner to outbid you.
The opposite forces are in effect when a seller’s market is on the rise. Buyers are crawling the walls of real estate offices everywhere waiting for those newly listed homes to make an appearance. In this situation, prices are firm and new listings are grabbed faster than the last napkin at the BBQ. Buyers have to be fast in a sellers market. They have to be able to jump - financially and mentally - when something comes up that fits their needs.
Buying during a seller’s market often means bidding way above the listing price and having to do it rather quickly. A buyer who is unsure of her financing and has a contract laden with contingencies is not going to look very good next to the buyer with a prepared contract and prequalification letter in hand.
Does this mean you should wait for a favorable market before buying or selling? Not necessarily. It is possible to get a good deal in any market. Getting a good deal simply means buying a house below fair market value. Look for homes that have hidden value-added deals. Some houses are valued low simply because they have small cosmetic defects that you could fix for minimal time and money.
Keep your eyes open and your sharp buyer’s wits about you and you just might you’re your dream home around the next corner.