The difference between a buyer’s market and a seller’s market (and how to take advantage of both)

Knowing when to buy or sell a home can be difficult. Certain periods of time are categorized as ‘buyers’ markets’ or ‘sellers’ markets’, but what do these terms really mean, other than loosely speaking about who has the upper hand? And what if you’re a buyer in a seller’s market, or vice versa?

What is a buyer’s market?

Ultimately, market type indicates which group has the most bargaining power. In other words, in a buyer’s market, people looking to buy a home tend to have better options and get more out of their real estate spending. This is due to the large number of homes for sale. Than there are interested buyers.

according to forbesthe potential causes of the buyer’s market are:

• Recession
• Major Employer Leaves Region

• High or increasing crime rate
• overbuilding

What is a seller’s market?

In the seller’s market, there are many people who want to buy a house, not enough homes to sell to meet that demand. A housing shortage means that homes sell quickly once they are listed, and if multiple buyers get into a bidding war, they could end up with higher-than-expected prices.

How to take advantage of all types of markets

Even if the housing market isn’t currently favorable to you as a buyer or seller, there are ways you can do it. make most of.

For example, if you can’t sell your home on the buyer’s market, you can use the opportunity to make small updates and repairs to your home to make it more attractive to buyers. It doesn’t have to be expensive or extreme. Just removing personal and family photos from the walls, decluttering, and doing some simple landscaping can make a difference.

On the other hand, if you’re a seller’s market buyer, attend an open house and keep exploring the area.Instead of buying something just because it’s available, you’ll get a better idea of ​​what you actually want.