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

Know You’re At A Disadvantage
When it comes to making an offer, keep in mind that you’re the one at a disadvantage. A seller’s market is not the time to try to push contingencies, concessions, specific closing dates or repairs. Focus on what’s most important to you. If there are certain stipulations you want written into the contract, think hard about whether they’re worth losing the property over. If you can make an all-cash offer, you should. Sellers prefer buyers who are willing to buy the house with cash because they don’t have to worry about the deal falling through due to issues with financing.
Be Patient
If you find that you keep losing out on the homes you’re interested in, it’s crucial to be patient and not get discouraged. Many buyers end up suffering during a seller’s market because they get frustrated. Inexperienced buyers caught up in bidding wars will often offer more money than a home is actually worth – or they feel comfortable spending – in order to get the home they want. That’s always a mistake.
Don’t Settle
On the flip side, some buyers will end up making offers on homes they otherwise wouldn’t be interested in because they’re tired of losing out. Remember, buying any property is a huge investment and often a 30-year commitment to a mortgage payment. Don’t settle on a home just because it’s available. Unless you have to move immediately, it’s a much better idea to wait it out and resume your home search after the market cools down.

Tips For Sellers

Since sellers must compete with each other to attract buyers in a seller’s market, it’s helpful to know how to increase interest in your property.
Clean And Organize Your Home
To begin, make sure that your home is in good condition and has been cleaned and organized before you market or show the property.
Price It Fairly
Even though homes tend to sell for more money in a seller’s market, it still helps to price your home fairly. If you set your asking price at or slightly below fair market value, you’re likely to attract more interested buyers. Some sellers choose to list their homes for slightly less than the assessed value in order to encourage a bidding war.