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Buyers’ vs. Sellers’ Markets

When you are interested in home selling and buying, you may become aware of the terms buyer and seller markets. Both concepts are important to understand as it has direct impact to your buying and selling powers.

What is the difference between the two types of concepts? A buyers market is a condition where there are more houses sold compared to the number of buyers. On the other hand, a sellers market takes place when there are more buyers compared to number of properties sold.

Okay, so you have the basic concept. You may think it is all just about supply and demand: purely economics. But what is its importance? As mentioned above, the kind of market has a direct impact to you whether you are playing as a seller, a buyer or an investor. So you may want to stick around a bit to find out how it can affect you.

If it is a buyers market, the favor falls in the hands of the buyer. Since there are more houses sold than the number of interested people to make the purchase, there is tough competition among sellers. Since there are few buyers in the market, selling period may take some time. If this happens, sellers would have to get their properties off their market or wait until the condition reverts. Others may be desperate to sell, sometimes they would be forced to lower down their asking price just to close the sale.

If it is a sellers market, the favor is in the hands of the sellers. Selling period would not take a long time since there are plenty of desperate buyers flocking in the market. The competition lies in between them: the buyers. At this time, sellers are now able to protect the value of their homes, which means more cash for them.

Since in the latter condition the tables have turned, buyers would have to do what they can to be able to get the house they want. In one home sale, there may be more than 2 interested buyers. Hence, purchase offers should be unique and attractive to get the sellers to say yes.

There are a whole variety of factors that could flip the market back and forth. Today, the market is a buyers market. Home sales are increased due to the existence of foreclosure homes and prices of homes are greatly decreased. However, more people are also cutting back on the purchase because there are also other factors like employment.

The kind of market could really change in an instant. Hence, if you want to play the field, you really need to be up to date on the changes of market. You cannot just decide right there and then to make a purchase or to sell. For every player in real estate, the goal is to make the most of their money for each market. If you want this for yourself, it is important to get acquainted with these concepts before engaging to buying and selling activities.

December 2018
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