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. Buyers have more negotiating power than people selling their homes, and can often 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.
Strategies for Selling in a Buyer’s Market
- Highlight Your Home’s Competitive Advantage: Before listing your home for sale, see what else is on the market in your asking price range. What does your home offer that buyers might find more attractive? Ideally, you want to position your home so buyers choose yours over the other homes for sale. If you don’t have a competitive advantage: pack up your possessions, have your home staged, have your home painted in up-to-date colors, and have a handyman finish the projects you never got around to doing or finishing.
- Create a Budget for Costs: Many sellers need to net a certain price for their home so they can pay off their mortgage and cover their closing costs and moving expenses. If you’re in an area where buyers are likely to ask for help with their closing costs or repairs, plan ahead. Figure out how you can afford to offer closing cost assistance if buyers ask for it.
- Do a Pre-Inspection: One great way to make your home more attractive to buyers is to hire a home inspector before you put it on the market. This strategy will identify any problems that should be fixed before listing your house. Sometimes, homeowners are surprised to learn there is something that needs to be fixed. Taking this extra step will help your home sail through the appraisal and inspection process once you have an interested buyer. If the inspection reveals any issues that you don’t want to deal with or can’t afford to fix, you can either lower your asking price or offer the seller a repair credit at closing so they can handle any issues themselves.
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 because sellers have more negotiating power than buyers. 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.
Strategies for Selling in a Seller’s Market
- List Your Home at Market Value: You might want to list your home low to encourage a bidding war, or you might want to list it high because you know the market is hot. However, listing at market value might be the best bet. Buyers can be turned off by overpriced homes, and mortgage applications get denied when the appraisal doesn’t support too high of a price.
- Know How to Choose the Best Offer: the offer that sounds the best and the offer that will actually close on time and with minimal hassle aren’t necessarily the same offer. Let’s face it, you don’t want the deal to fall apart. Your listing agent will go over the pros and cons of offers so you can choose the one that has the best chances of closing while meeting your needs.
- Have Your Next Home Lined Up: In a hot market, there’s a good chance your home will sell in days – which doesn’t give you much time to find your next home. You can always request a rent-back so you have time to find a home, although that can exclude those buyers who can’t give you a rent back.
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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Hi, I’m Melissa Spittel, the trusted North / Central Maryland and Southern Pennsylvania real estate expert and a local agent with Corner House Realty.
After over a decade helping clients across Maryland and Pennsylvania, I bring a unique blend of deep local knowledge, sharp market insight, and a focused, confident approach to every transaction. Think of me as your seasoned guide, ready to make your real estate journey straightforward and successful.
How Can I Help You Next?
✅National Relocation: Moving out of MD or PA? I can connect you with vetted, top-tier agents nationwide through my trusted network.
✅First-Time Home Buyers: Guiding you through the entire process, from understanding financing basics to receiving your house keys with confidence and clarity.
✅Home Selling and Downsizing Expert: Specializing in seamless transitions for clients moving into smaller homes, larger homes and Adult Communities.
✅The Local Edge: Deep-rooted expertise in areas like Carroll County, MD, Baltimore County, MD and York County PA, to give you a strategic advantage in a competitive market.
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