Before you consider buying or selling a home, its a good idea to test the waters a little bit to see what kind of environment youre dealing with. The type of market determines a great deal about pricing, not to mention negotiations. When you know what youre facing, you can position yourself better.
Buyers Markets 101
A buyers market exists when there is plenty of real estate to go around. When you notice houses going on the market and staying on the market for over six months, you know the market will welcome the buyer. Traditionally mean prices on potential homes are going down now, meaning its a great time to shop. Not only will you have tons of variety from which to choose, but youll probably get a bargain.
Buyers markets make for restless and anxious sellers. Theyll be much more willing to negotiate and thats not simply on price point either. You can sometimes get concessions on repairs and closing costs too.
Sellers Market Heres Your For Sale Sign
As the title implies, the sellers market is one in which there are either lots of buyers, or more buyers than homes available. For a seller, the time couldnt be more ideal to get what your property is REALLY worth with very little hassle.
Sellers markets create more cooperative buyers who are weary of the shopping jungle. Theyll typically come in at higher offerings without asking for all kinds of contingencies. During the sellers market your house will probably move quickly.
A sellers market is characterized by there being very few houses on the market, and very fast sell-through. The closing prices on sales are typically full price or even above! So put out that for-sale sign and wait for your phone to be ringing off the hook.
Neutral Markets A tug of war
Sometimes the real estate market doesnt favor anyone. This happens when interest rates are down, and/or there are a fairly even number of buyers and sellers. Since the market isnt volatile theres going to be some normal back and forth in negotiations.
For sellers this means doing all the smart things touching up the house, starting at a median price, and being flexible. For buyers it means taking a long hard look, making a fair offer, and likewise being willing to parley. In this type of market houses usually sell in under two months.