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Today in the United States, home sales are on the rise as mortgage interest rates remain low. Buyers are looking to take advantage of low-interest rates and sellers are looking to get top-dollar for their home in the low inventory, competitive market. Is it a buyer or seller’s market?
When the supply of homes exceeds the demand it’s a buyer’s market. The inventory of homes listed for sale is large but there aren’t many interested buyers looking. These conditions give buyers leverage over sellers because when supply is higher and demand lower, the market is forced to respond.
In a buyer’s market, real estate prices decrease, and homes linger on the market longer. Because of this, sellers will need to compete with each other in order to attract buyers. What typically happens is sellers drop their asking prices to gain an advantage in the market and they are ready to negotiate offers to prevent buyers from walking away. A buyer’s market does not mean your house won’t sell. Hire an experienced Realtor to help you get your home ready to show and to price it right to sell.
A few tips for buying a home in a buyers market knowing that it’s the ideal time to buy your dream home because the prices are lower and there are less people to compete with shopping the market:
Don’t rush. This is when you can take your time because with less competition it’s not as much of a concern that you might miss out on a property you like.
Have your Realtor show you as many homes for sale as possible. Knowing what is available on the market is favorable because it will not only ensure that you find the perfect home but give you a greater ability to negotiate on price.
A good Realtor will make sure you are familiar with all the comparable properties on the market and this will help in negotiating the price. Use the comps to your advantage.
Know how long a home has been on the market. The longer it has been available the more power you will have to negotiate for a lower price.
A few tips for selling your home in a buyers market:
Make your home stand out. Take advice from an experienced Realtor on what should be done to accomplish this.
There are more properties out there when it’s a buyer’s market and they will be pickier. If your home needs repairs it’s in your best interest to get them fixed.
Clean and depersonalize each room. If buyers can’t envision themselves living in your home, they won’t make offers. Get rid of any clutter, hire a professional cleaning service and touch up your landscaping to prepare to put your home on the market. Pull out any family photos, papers, souvenirs, or anything else that makes it “your” home.
Find the Realtor that will price your home competitively. Look at all the listings in your area and see what they are offering. Make sure your asking 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.
A buyer’s market is the most ideal time to buy a home. You will have the advantage as a buyer. Not only are there more homes to choose from, but you have the power in most negotiations. The ability to walk away from a sale knowing there are probably comparable homes on the market gives you the power. Sellers are more likely to make concessions, drop prices and accept less favorable offers.
If your plans are to buy or sell a home soon, align yourself with a trustworthy Realtor. They are well-versed in market trends and can answer questions you may have throughout the buying or selling process.