The real estate market has two opposing sides-the buyers and the sellers. The buyers want to get the best value and the lowest price, while the sellers want to maximize their profits.
Depending on the status of the current housing inventory at any point in time will give one or the other an advantage and a better bargaining position. Understanding the difference between a buyer’s and seller’s market is to have an understanding of the basic law of economics, supply and demand.
If there’s a surplus of unsold homes and a low demand for them, that’s a buyer’s market. Prices drop and homes are likely to remain on the market for longer periods of time. This puts pressure on sellers to lower their asking prices or to make other concessions as a part of the sale.
If you’re a buyer in this type of market, good for you. There’s no need to rush or feel pressured to buy, and you should be able to find a home and negotiate a favorable contract.
If you’re a seller in this market, you’ve got some work to do. In order to get the highest price for your home, you’ll need to do something to make it stand out from other properties in the same area. Your real estate agent would be a good source for suggestions as to how to best market your home. You may need to make some upgrades or hire a staging service to make your home look its best to prospective buyers.
This occurs when the number of homes on the market is exceeded by the number of people looking for homes. In these markets, prices go up, homes sell faster, and many sellers will be presented with multiple offers, often for more than the list price.
If you’re a seller in this market, you still have to make sure your home is appealing to buyers. Despite less competition, you should get your home ready to sell by refreshing it, reducing clutter, and pricing it competitively.
If you’re a buyer in a seller’s market, don’t’ despair, but be prepared. Get a pre-qualification letter from your chosen mortgage company to entice the buyer to accept your offer quickly. You’ll likely have to offer more than the asking price, but don’t get tied up in a bidding war. If that starts to happen, move along, and look for another house.
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No matter what the market conditions are, buying or selling your home doesn’t have to be a stressful experience when you partner with a company like Vutech/Ruff, Cutler Real Estate. We provide outstanding service, assisting with just about every aspect of real estate while maintaining the highest level of professionalism. As an official member of The Columbus Board of Realtors, we are consistently one of the highest producing teams in Central Ohio. For additional information about how we can help you, visit our website or contact us at 614-706-0122.