Buyers’ market or seller’s market, how do you know when the ball is in your court? Tracking the real estate forecast can give you an idea of where you stand when it comes time to buy or sell a home, and whether you should move forward, or wait for sunnier skies. At one end of the spectrum, buyers are competing with other bidders, and cashing in all their bargaining chips for the perfect home, while sellers work hard to outshine their competitors. Before setting the stage to sell, or choosing to buy, understanding the current market can help you make a better-informed decision.
If you’re in the position of shopping for a home, a buyer’s market puts you in the driver’s seat when it comes to having a greater inventory of properties to choose from, and the power to negotiate. With supply exceeding demand, sellers are working harder to attract buyers and boost the home’s sales potential by lowering asking prices. Homes will also typically stay on the market longer, which gives the buyer a chance to score an amazing deal. A good agent can help potential buyers create a checklist of must-haves and provide far more options than if this were a seller’s market scenario.
Fast sales, bidding wars, and higher prices are a good indication you’re in the seller’s market zone. As a seller, this is an ideal position in terms of getting your property sold, and at your targeted listing price. Fewer homes and more buyers give the seller the opportunity to be choosy about the offers, and terms they accept. This situation is less than desirable for buyers who may have their eye on a home, but face making an offer with several others already on the table. With homes selling quickly, agents have limited inventory to show buyers, and are faced with having to use savvy tactics to help clients get ahead of the competition.
Unless you’re planning on a for-sale-by-owner transaction, finding a real estate agent to help you buy or sell is an important first step. Since you’ll be working with this person on a regular basis, compatibility, and effective communication are key. Whether you’re buying or selling, a good agent should be upfront, and honest about whether the current climate is buyer or seller-driven, and help you determine if you should dive in now or wait for the market to shift in your favor.
