Buyers Market vs Sellers Market
Just like the stock market fluctuates, the real estate market fluctuates, too. In real estate, it’s always going to be either a buyers market, a sellers market, or somewhere in between. These terms can be confusing, and are often misunderstood. If you want to buy a house for the lowest price, or sell a house for the highest price, you’ve come to the right place to learn when is the best time to do it. The real estate market at any particular time will greatly impact your sale or purchase.
When buying a house, you want to make sure you’re getting the best possible value for your money, right? Of course you do! And if you’re selling a house, you want to make as much as possible, right? That should be your goal!
It’s important to understand that even within the same state or, especially from one state to another, there can be several different markets. You may run into a situation where you’re selling your house for top dollar and getting a great deal buying another house somewhere else, or any combination of the two, depending on where you decide to move to. This is often a factor in relocation decisions.
What is a Buyers Market?
If you’re buying a house in Maryland, a buyer’s market is the ideal time to make your move. You might be able to buy a great house for a lower cost than you would in a sellers market.
Buying a House in a Buyers Market
A buyer’s market is when there are more houses for sale than there are people who want to buy a house. Buyers have a variety of houses to choose from. There is little to no competition for any one house. And buyers can get a better deal.
Selling a House in a Buyers Market
If you’re trying to sell your property in a buyer’s market, your house 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, such as offering a home warranty or seller help toward a buyer’s closing costs, in order to secure a buyer.
What is a Sellers Market?
Selling a House in a Sellers Market
A seller’s market is just the opposite. There are more buyers than there are homes for sale. This often leads to multiple buyers interested in a single property, multiple offers and bidding wars, which drives up the price. That makes a seller’s market a fantastic time to sell a house. You’ll have the greatest chance of selling fast and for top dollar. Some houses even end up selling for more than the list price.
Buying a House in a Sellers Market
If you’re buying a house in a seller’s market, the first thing you need to understand is that the seller has the advantage.You need to be prepared to spend more to get what you want. If other buyers are interested in the same property you decide to make an offer on, trying to get a lower sale price is a waste of your time, and leads to a lot of frustration and disappointment. In fact, you could lose the opportunity to purchase the property altogether if a competing buyer makes a higher offer.
How Can You Tell if it’s a Buyers or Sellers Market?
One way to determine if it’s a buyer’s market or a seller’s market is to look at inventory, or the number of homes for sale. If there aren’t a lot of houses for sale, it’s most likely a seller’s market.
As the local real estate expert, Melissa Spittel looks at something called the months of supply. If you choose to work with Melissa to buy or sell a house in Maryland, she will share what you need to know to make the BEST decisions.
The Bottom Line is This…
BUY in a BUYERS market.
SELL in a SELLERS market.
In a buyers market, the buyer has the power. More houses for sale and fewer buyers allows you to negotiate better deals if you’re the BUYER.
In a sellers market, the seller has the power. More buyers and fewer houses for sale allows you to negotiate better deals – if you’re the SELLER.
Buyer’s and seller’s markets don’t last forever, though. It’s hard to predict what the market will do with any accuracy and things change slowly. You might end up waiting months or years for things to change. And when circumstances do change, it may not be in your favor. People move all the time. Understanding the difference between a buyers and sellers market will help you know what to expect when it’s your turn to move.
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About the Author:
Melissa Spittel is a local real estate expert who serves Carroll County and the surrounding areas in Maryland. Her knowledge, skills and experience are invaluable when it comes to buying or selling a house. Her experience working with out-of-state buyers and sellers makes her a great relocation REALTOR®, and she is part of Coldwell Banker’s Relocation Team. Do you need a real estate expert in another part of Maryland? Or even in another state? Melissa can easily connect you with a REALTOR® from her wide network of real estate pros.