The real estate market is a volatile and ever changing one. There are so many factors from so many directions that control how much money houses go for. Real estate agents are incredibly helpful in navigating the treacherous waters, but certain things, like understanding the difference between a buyers market and a sellers market are important to know starting out. The more information you have the better your chances are of getting the home of your dreams.
What’s a “Sellers Market”?
A seller’s market happens when there are significantly more people interested in buying a house than there are people selling theirs. The higher demand for houses helps sellers get their homes sold faster and for better prices.
When you start your search, keep track and see if houses are coming on and off the market quickly, selling for over asking price, or going into bidding wars. All of these are signs that you’re entering into a sellers market. If you’re noticing these trends be sure to talk to your real estate agent about it and develop a plan, whether you’re buying or selling. It’s important to know what you’re willing to do before you need to start making decisions under pressure.
Whether you think it’s a buyers market or a sellers market it’s important to keep track on if house prices are on the rise.
What’s a “Buyers Market”?
On the other hand, a buyers market happens when more people are looking to sell their homes than there are people to buy them. There are several reasons this can occur, either an increase in development providing more homes, or a decreasing interest for the area, or an extreme sellers market bursting and leading to massive sellofs. Whatever the reason, it creates a market environment that is much more forgiving and friendly to buyers than the sellers, giving buyers leverage in negotiations and the ability to be pickier.
When you’re starting your search look for houses sitting on the market for longer periods of time, see if they’re selling below asking price, or keep track and see if list prices in general start dropping across the board. If you’re interested in buying your starter home, a buyers market is the ideal time to.
There’s buyer’s market, sellers market and a Hostile Market.
If you have more questions, contact us! At Frank B. Pallotta Law we are licensed Real Estate Lawyers with 20 years of experience helping our clients in Georgia navigate the closing process. Reach out to us with your questions. We’re committed to demystifying the closing process, one question at a time.