Buyer’s Market Vs. Seller’s Market: What Does Each Mean For You, And What Is The Current Market State?

Market It Like A Pro
Your marketing will matter even more than it would in a neutral or seller’s market, so make sure you have stellar, professional photos taken of your property. If your home will be vacant or your decor is dated, it’s a good idea to hire a stager. With the assistance of a professional, you’ll be able to transform your rooms, so they look cohesive and polished.
Price It Competitively
It’s crucial that you ensure your home is competitive by pricing it to sell. Survey similar homes on the market to see what they’re asking. Make sure your list price is either on par with or lower than the comparable homes in your area. And when you do get an offer, make sure that you judge it fairly. Since you have less power to negotiate, you should consider offering to pay a portion of the closing costs and for any repairs requested.

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What Is A Seller’s Market?

A seller’s market arises when demand exceeds supply. In other words, there are many interested buyers, but the real estate inventory is low. Since there are fewer homes available, sellers are at an advantage.

What Happens In A Seller’s Market?

In a seller’s market, homes sell faster, and buyers must compete with each other in order to score a property. These market conditions often make buyers willing to spend more on a home than they would otherwise. Therefore, sellers can raise their asking prices. Furthermore, the increased interest means that buyers rarely have the power to negotiate and are more willing to accept properties as is.
Due to the shortage of housing, these conditions often lead to bidding wars. During bidding wars, buyers will make competing offers and drive up the price, typically above what the seller initially asked for.

Tips For Buyers

Whenever there’s a limited supply of houses on the market and a wealth of interested buyers, time is of the essence.
Act Fast
If you find your dream home during a seller’s market, it will behoove you to act fast. If you hem and haw over a house you know you want to buy, you may find that it’s no longer available by the time you wish to make an offer. Understand how to get your initial mortgage approval ahead of time, so your financing is in order when you need it.