Real estate professionals throw around the terms “Buyer’s Market” and “Seller’s Market” all the time, but if you’re not experienced in the realm of real estate, these terms may just leave you more confused than ever about when you should sell your house or buy a new one. Today, we at Maria Sims Group just want to clear up what exactly that these terms mean and how they apply to your own real estate journey. This article will focus on what the term buyer’s market means, but keep an eye out for our upcoming article on what a seller’s market looks like as well!
- Buyers have more negotiating power: Just as the name implies, when the market is a “buyer’s market,” the buyer is the one with the power. A lot of this power comes from the reasons that will be discussed below, but the result is that in negotiations over the sale of a house, a buyer is more likely to get a greater number of concessions simply because they have a bit more control over the situation. The opposite is true in a seller’s market.
- There are more houses for sale: If you were looking to buy a house over the summer, you might have seen just how quickly houses were selling. In fact, they were selling so quickly that there was hardly time to go and look at some houses before they were already under contract, with the result being that there weren’t a lot of options available at any given time. This summer was an undeniable seller’s market, and a buyer’s market is characterized by the opposite scenario: rather than houses selling quickly resulting in low inventory, there are typically a large variety of houses for sale for buyers to choose from. This is part of what gives buyers the power, as there is usually no shortage of houses that they can try to get as long as they aren’t too picky, giving them room to walk away from a deal they don’t like.
- Selling prices tend to go down: When buyers have negotiating power, it is pretty much inevitable that sellers aren’t likely to get quite as much for their houses. So, if you’re looking to buy a house, this is perfect for you, but if you’re a seller, you may want to wait until the market flips around again. Then again, if you’re going to be simultaneously selling and buying, things end up pretty much evening out, so it becomes more about preference.
- They are most common in Fall and Winter: Tons of buyers come out of the woodwork in spring and summer, flooding the market in an effort to get settled again before the new school year starts. However, once everyone is back in school, the market settles back down into a nice, calm buyer’s market where it is much more rare to have someone house hunting every weekend unless their situation is pressing. This becomes particularly true around the holiday season as people host company on the weekends instead of getting out and about to buy a new home.
- Houses tend to stay on the market longer: This has been alluded to in the previous points, but houses tend to stay on the market longer during a buyer’s market because buyers have more time to consider their options due to the less frequent number of buyers looking. That means that sellers need to be more prepared to put their house on the market in advance of when they’re actually hoping to move so that they can be prepared when the right buyer comes along to buy the house.
These tips have been brought to you by Maria Sims Group, a company dedicated to making sure that you’re in the best home for you. If you have any questions about our company or would like to ask about a personalized list of homes that would fit your needs, please reach out. Our homepage can be found at mariasimsgroup.com or you can call us at 404-805-0673.