Real estate is a fast-moving business in the US. In 2019, 5.34 million existing homes and 682,000 newly-constructed homes were sold in America.
If you have any experience in buying or selling houses, you will undoubtedly have heard people talk about “buyer’s markets” and “seller’s markets”. These phrases essentially relate to how competitive the housing market is in the area where you are looking to buy or sell.
Understanding these market conditions and how to use them to your advantage could be a critical factor in making a successful purchase or sale. So read on to find out all you need to know about buyer’s and seller’s markets.
What Is a Buyer’s Market?
If there are more people wanting to sell their houses than there are people wanting to buy a new house, then this is known as a buyer’s market. Buyers hold the power, and sellers need to work hard to capture their attention in a saturated market.
If you’re looking to buy in these market conditions, you have a good chance of getting a deal, particularly if you focus your attention on properties that have been on the market for a while.
If you’re trying to sell, you’ll need to work harder at marketing your property. Your realtor may be able to advise on innovative advertising strategies to attract more buyer attention. You may also have to prepare yourself to accept a lower price than you may have hoped for, or postpone your sale until the market conditions are more favorable.
What Is a Seller’s Market?
We can define a seller’s market as one where there are fewer houses available on the market than there are potential buyers looking for new houses. In these conditions, sellers have the power due to the shortage of availability.
If you’re selling a home in a seller’s market, you might be able to set a higher asking price or even encourage bidding wars between competing buyers. It’s important not to neglect marketing though – there’s a risk that your house could still sell for less than its full potential if you don’t put in the effort.
How to Buy a House in a Seller’s Market
It’s difficult to predict what the housing market will look like in the near future. But if you’re looking to buy property in a seller’s market, you need to be prepared to move fast. Hesitating for just a matter of hours could result in you losing out on the house that you love.
You should be as prepared as possible before you enter the market. Try to get your mortgage pre-approved first, so that you know what you’re working with financially.
It’s also good to do as much research as possible before viewing properties, so you’re prepared to make a quick decision if you want to make an offer. If you’re unsure about how much to offer for a house, you should check out this advice from Manausa.com.
Diving Into the Real Estate Market
It’s both exciting and ner-wracking taking the plunge into the real estate market. Whether you’re operating in a buyer’s or a seller’s market, being well-informed about market conditions is the most important thing.
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