Buyer’s vs Seller’s Market: What’s The Difference?

The world of real estate can feel intimidating at first glance. There’s no shortage of industry jargon; it’s enough to make your head spin. You may have heard the phrases “buyer’s market” and “seller’s market” used before. Let’s explore these descriptions. 

What Is A Buyer’s Market?

A buyer’s market is one where buyers have more power. Homes are abundant, homes sit on the market for longer, and prices are stable or declining. Buyers can be more selective and have more negotiating power. These trends allow buyers to take their time to find the home of their dreams.

What Is A Seller’s Market?

Seller’s markets are characterized by a lower supply of homes available for sale, high competition, and higher prices. In this type of market, it can feel as though as soon as a home hits the market, it has an accepted offer faster than you can blink. You might find yourself in a bidding war, placing bids over the asking price to ensure a competitive offer. One of the best things a buyer can do in this market is to have a pre-approval letter before starting your house search. 

Pre-approved buyers are more likely to have their offer considered and accepted; it shows the seller that the buyer is serious and likely to obtain approval from a lender for their mortgage. You can get your pre-approval process started by applying today. 

How Long Will We Stay In One Type Of Market? 

It’s impossible to predict with certainty when one type of market will end and another will begin. Watching mortgage and housing news is a great way to hear from experts on their predictions, but it’s important to remember that they are just predictions. While it can be enticing to wait to list your home or purchase a home until trends are more favorable, there’s no telling how long you might be waiting.
By finding a team you trust, you can navigate any market conditions with confidence and relative ease.