Everyone wants to know what the market is like and everyone has their thoughts, predictions and assumptions of what the market is going to do. Honestly, none of us really know what the market is going to do unless we're experts who truly follow it but not even they're right all the time. Most of us have to just wait and see.
Since I'm no market expert, but just follow it to try and see what twists and turns it's going to make, I want to give you a little insight on the differences between a Buyer's and a Seller's Market and how it effects you on each side.
Let's start off with a Buyer's Market.
A Buyer's Market is when the amount of houses for sale exceeds the number of buyers looking to purchase. Supply is greater than the demand.
What does this mean for you as a buyer?
There are more homes available for purchase.
You have more negotiating power due to sellers home sitting on the market longer
Potentially lower prices for a home.
What does this mean for sellers?
May take a little longer to sell your home with so many homes being available for sale
May have to sell your home below asking price.
Now let's get into the Seller's Market:
In a seller's market, the amount of homes for sale is lower compared to the number of buyers looking to purchase. Demand is higher than supply.
What does this mean for the seller?
Your home may sell faster than normal.
You may get multiple offers for your home at one time.
You may get more than the asking price of your home due to buyers having a bidding war.
What does this mean for buyers?
You have more competition when it comes to buying houses in this market.
You may pay higher price for homes as there will be possible bidding wars.
Happy house shopping and selling!!!
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