A buyers market and a sellers market are terms used to describe the state of the real estate industry. In a buyers market, there is an excess of homes for sale and a shortage of buyers, which means that buyers have the upper hand in negotiations and can often get a good deal on a home. In a sellers market, the opposite is true – there are more buyers than there are homes for sale, so sellers have the upper hand and can often command higher prices for their homes.
The main difference between a buyers market and a sellers market is the level of competition. In a buyers market, there are typically many homes for sale and few buyers, so sellers have to compete with each other to attract buyers. This often leads to lower prices, as sellers try to make their homes more appealing to buyers. In a sellers market, there are typically fewer homes for sale and more buyers, so buyers have to compete with each other to secure a home. This often leads to higher prices, as buyers are willing to pay more to get the home they want.
Understanding whether you are in a buyers market or a sellers market is important when it comes to selling your home. In a buyers market, you may need to be more flexible on price and be willing to negotiate in order to attract buyers. You may also need to make your home more appealing to buyers, such as by making improvements or staging your home. In a sellers market, you may be able to command a higher price for your home and be less flexible on negotiation.
Overall, whether you are in a buyers market or a sellers market will impact the sale of your home and how much you can expect to get for it. As a seller, it is important to understand the state of the market and adjust your expectations and strategies accordingly.
To learn more, download our complete 2023 Buying and Selling guides.