If you want to buy or sell a home, it’s important to know if your local real estate market is in a buyer’s market or a seller’s market. Here’s how.
Buyer’s Market Definition
A buyer’s market occurs when the supply (available properties for sale) exceeds demand (the number of buyers seeking to purchase properties). If you’re buying a new home, a buyer’s market is the ideal time to make your move. You might be able to buy a great home for a lower cost than you would in a seller’s market.
If you’re trying to sell your property in a buyer’s market, your home may remain on the market longer before you’re able to secure a buyer due to the large number of available properties. You may also have to lower your listing price or make other concessions in order to secure a buyer.
Seller’s Market Definition
A seller’s market occurs when demand exceeds supply. Simply stated, a seller’s market is when there are more buyers seeking to purchase properties than there are available homes on the market. This often leads to multiple buyers interested in a single property, resulting in multiple offers and “highest and best” bidding wars. A seller’s market is a fantastic time to sell your home as you could secure a sale price that’s higher than your listing price, or at least more than your bottom line (the lowest price you’d be willing to accept for your home).
If you’re buying a home in a seller’s market, be aware that the seller has an advantage. If other buyers are interested in the same property you’re making an offer on, trying to get a lower sale price probably won’t work to your advantage. In fact, you could lose the opportunity to purchase the property altogether if a competing buyer makes a higher offer. Seller’s markets are sometimes called “renter’s markets” for this reason; sometimes potential buyers need to keep renting until they can save up a higher down payment and compete with other buyers in the market
How to Determine If It’s a Buyer’s Market vs. Seller’s Market
To determine if it’s a buyer’s market or a seller’s market, take a good look at the inventory (the number of homes for sale). If inventory is low, it is most likely a seller’s market. Your Tony Clark Realtors is a great resource to determine if it is a buyer’s market or a seller’s market in your area. Use our website www.TonyClark.com and select “Properties for Sale” and select your city/area. Also our “Market Report” blogs provide historical data that educates and empowers our clients to see the market trends in inventory.
Buying & Selling in Different Types of Markets
Tony Clark Realtors offers strategies for navigating every market. When working for our clients, our strategy is to guide and obtain the best deal, whether it’s a buyer’s market or a seller’s market. The key to success in buying and selling a home is simple: Work with a Realtor you trust, like Tony Clark Realtors. Tony Clark Realtor works from the heart of a teacher, is key to coming out ahead. From negotiations to inspections to title and closing, a Tony Clark Realtors works with you through every step. If you are finding us but do not live within our service area of Western Kentucky, Know that Tony Clark Realtors can refer you to an excellent Realtor who works from this same, client-first mindset: connect with us and let us refer you.