Buyer’s Market vs Seller’s Market Explained

 In #Buying Real Estate, #Selling Real Estate, #Thoughts

What is the difference between a buyer’s market and a seller’s market? A buyer’s market is when the buyer has the advantage and leverage in negotiations versus when the seller has the advantage and leverage.

In a buyer’s market:
1) Increased inventory – More homes to choose from for buyers
2) Time on the market – Homes take longer to sell in a buyer’s market
3) Decreased competition
4) Lower price in a buyer’s market
5) Buyer negotiation power goes up

In a seller’s market:
1) Decreased inventory – There are fewer homes to sell and more buyers than homes available
2) Less time on the market – The buyer has less time to complete due diligence
3) Increased competition – Buyers are competing for the same homes
4) Higher prices in a seller’s market – Competition drives the price up
5) Increased leverage for the seller and decreased leverage for the buyer – Difficult for the buyer to get desired terms

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