Before buying or selling a home, you’ll want to understand the current power dynamics in the housing market. There are two opposing sides of the market: buyers and sellers. Depending on factors such as supply and demand, one side has the upper hand.
Understanding where the market is can help you develop a strategy for buying or selling a home. Let’s take a closer look at both types of real estate markets and learn how buyers and sellers can make either situation work out for themselves.
What is buyer’s market?
in a buyer’s market, Rocket Homes Says, “The number of homes available is more than the number of potential buyers.” In other words, the current housing supply exceeds the demand from buyers.
When this happens, homes typically sit on the market for a long time. A bidding war is unlikely, and sellers who don’t want to wait for the market may decide to lower their asking price.
During this type of market, the buyers benefit. For example, they have more homes to choose from and more negotiating power. This can result in them getting more money.
What is seller’s market?
While sellers may find it difficult to move their home in a buyer’s market, this is not the case in a seller’s market. As you might expect, a seller’s market occurs when demand for housing exceeds supply.
“Seller’s Market” assurance financial Says, “Houses sell faster than average, requiring more buyers to compete with each other to secure a property.” As a result, sellers have an edge and can benefit in a few ways.
For example, buyers may enter into a bidding war with each other, causing the final price to be much higher than the asking price. Additionally, buyers may be quick to skip inspections and accept properties as is.
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