What’s the Difference: Buyer’s Versus Seller’s Market
There are times throughout history when—due to the economy, trends, and other factors—the housing market offers a much better deal or outcome from either the seller or the buyer. Understanding what the difference is between a buyer’s and a seller’s market will help determine your next move. Whichever one you choose holds the power. With the proper choice, you may get much more bang for, or with, your buck.
Buyer’s Market
A buyer’s market happens when the demand is exceeded by the supply. Due to the number of homes available, prices decrease. Homeowners are forced to let their home’s potential linger on the market or sweeten the deal for prospective buyers. In competing with other sellers to attract buyers, asking prices are often dropped to gain market advantage.
Seller’s Market
A seller’s market occurs when there’s a shortage of available homes for sale. Due to the uneven ratio of people in search of a home versus the homes that are available, sellers have the upper hand. When low supply is met with high demand, a bidding war can ensue between interested parties. This typically raises the selling price above what was originally being asked.
Home Marketing
The marketing of a home will differ depending on the type of market. When it favors buyers, real estate agents and homeowners have to work to make their listing stand out amongst others. Curb appeal, social media reach, and tours—whether virtual or in-person—are important. Alternatively, when the market favors the sellers, homeowners have more leeway—yet it’s a common mistake to neglect proper promotion and marketing of the estate.
Streamline Mortgage’s private lenders in Nevada are well versed on what the differences between a buyer’s and seller’s market means for you. For guidance and expertise on the housing market and next steps, consult one of our professionals. Understanding when to strike to get the best deal is essential in housing.