You have probably heard the term sellers’ market more times than you can count if you are searching for a house right now during the CORONA pandemic. What does that really mean? Is there such a thing as a buyers’ market then, and what’s the difference between the two?
What is a Seller’s Market?
This is a term used in the real estate market to describe the demand for buying homes or the number of buyers looking as larger than the number of homes available for purchase. There are more buyers than homes for sale essentially. This gives a seller putting their house up for sale the upper hand in negotiations as there are several people that may want to purchase their home. This can lead to very fast home sales, multiple offers on homes, and even bidding wars where the home sales above list price. This also causes the fair market value of homes to rise.
Buying a Home in a Sellers’ Market
As a buyer looking for a home in a sellers’ market can mean shopping a little while longer, taking quick action to look at and make an offer on a home, preparing for losing a competition, and being a little more negotiable.
Buying in a sellers’ market is more difficult, but not a lost cause. The best things to remember are to stay patient, hire an expert agent, and don’t get your hopes wrapped into the first home you want to put an offer on. Some things you can do to help you prepare to win out in a competitive market include: having pre-approval paperwork ready, being ready to act quickly on looking at homes and making offers as well as being available to sign loan papers, and writing a strong offer. All of these are things an agent will be a crucial help with.
How is a Buyers’ Market Different?
A buyers’ market is pretty much the opposite of a sellers’ market. It is a term used to describe when there are plenty of homes for sale on the market and few buyers looking to purchase a home.
Buying a Home in a Buyers’ Market
While it may seem like navigating a buyers’ market should be pretty simple there are still some things to consider. In a buyers’ market homes are typically cheaper and you may be able to find a good deal on a home, but be careful not to fall into the trap of looking at homes that are just a bit above your budget because you can finally get that dream home you always wanted.
Whether you are buying currently in today’s pandemic sellers’ market or buy in the future in more of a buyer’s market, one thing is for certain. You will need the help of an experienced local real estate agent.
For more information on homes for sale in Indian Pass and surrounding areas please contact us any time. We are here to help you find just the right Forgotten Coast home.
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- How to Save Money On Your Next Home Purchase
- 4 Questions to Ask Yourself to Find the Right Home
- Bankruptcy or Foreclosure Looming?
- The Home Buyers Guide to Getting Mortgage Ready