What is the difference between a buyer’s market and a seller’s market? I’m sure many of you have heard the terms before, but if you’re not sure what they mean, I’ll clear it up for you today.
If you’re in a buyer’s market, it means that there’s more supply than demand. In turn, this means that buyers have more negotiating power than homeowners. With this power, you could potentially pay less than the asking price on a home. If you’re a seller in a buyer’s market, it may take you a bit longer to sell your home and you may receive fewer offers than you would in a seller’s market.
In a seller’s market, demand exceeds supply. This means that there are fewer homes to choose from, so buyers may have to pay above the asking price. The competition in this type of market often leads to multiple offers on a given home, so be prepared with a pre-approval before you make an offer so that yours will stand out amongst the others. Sellers in a seller’s market will likely sell their homes quickly and potentially for more money. Buyers will often overlook minor repairs they see.
I hope this gives you a better understanding of the difference between these types of markets. If you have any questions, please feel free to reach out to us. We’d be glad to help.