What's A Buyer's Market
If you’re like most buyers, you want the best house for the lowest investment possible. As they say, “timing is everything,” so you’ll be lucky to find yourself smack in the midst of a buyer’s market. Though most people move for reasons other than the availability of good deals, if the desire or need to purchase a house exists, buying a home in a buyer’s market makes the deal that much sweeter. Essentially, when there are many houses for sale and few buyers, sellers respond by lowering their asking prices and the average sale price drops. More choice at a better price is the buyer’s dream situation.
What’s the difference between a buyer’s and seller’s market?
Unlike conditions that form a buyer’s market, a seller’s market exists when there are fewer houses for sale and many buyers competing with each other. In a seller’s market, buyers frequently pay far more to clinch the deal, offer timing concessions and will frequently even pass up ordering a home inspection, which can be a painful mistake. In 2021, a seller’s market drove prices up in many areas of the United States and the market still lingers into 2022. In a seller’s market, people even commit to buying homes without an on-site walk through at times.
Of course, you can move forward and find a house to buy in any market, but a buyer’s market will provide you with more choice and possibly a more attractive price. In this case, it’s likely you have far more choices and will probably find something that meets more of your family’s needs whether it be age, condition, size or location. In addition to an attractive sale price, sellers more are likely to give concessions in a seller’s market. For instance, they might be more flexible on the closing date, agree to cover some of your legal and tax expenses or be more agreeable to correct or pay you to fix items that might appear on your home inspection.
Unlike a seller’s market where you might see the same group of buyer’s racing from house to house in order to get a jump on the competition, a buyer’s market also gives you some breathing room to patiently review what’s available and prioritize only those homes that allow you to check all or most of your “want and need” boxes.
To put it simply, a buyer’s market offers conditions that favor buyers and a seller’s market does the same for sellers. The market as it is in real time is always a buyer’s market or a seller’s market. There’s no in between in real estate. For those who don’t have the ability to wait for a buyer’s market, the good news is that very few will regret moving forward with the purchase of a house they call home.