Seller's Market vs Buyer's Market

When is the best time to buy or sell a home?

Knowing the answer to this question will help make your journey a whole lot easier!

What is a buyer's market?

Buyer's market occurs when the supply exceeds the demand.

For example, there are a high number of homes for sale, yet there's a shortage of buyers. In this instance, buyers have more leverage over sellers and prices tend to decrease.

Buyers in the buyer's market: It's a great time to take your time and view multiple properties! The competition and prices are currently low.

Sellers in a buyer's market: It's important that you take measures to make your property standout. You can choose to make some repairs to make the property stand out, or up your marketing game by hiring a home stager and a photographer. Buyers tend to be pickier during this time due to the large supply. A nice picture and staged home will increase the chances of getting more potential buyers.

What is a seller’s market?

Seller’s market occurs when the demand is greater than the supply.

In other words, there are a lot of buyers, but the number of homes for sale is low. During this time, homes sell faster and buyers will compete with others, in order to secure the home they wish to buy.

Due to the market conditions, buyers will be more willing to spend more on the home and sellers will be able to list at a higher price. A seller’s market will often lead to a bidding war where buyers will compete with other offers, usually done by increasing the offer price.

Buyers in a seller’s market: Act fast! The home you want may not be available by the time you wish to make an offer! Getting your mortgage pre-approved will give you a competitive edge as a potential buyer. Negotiating at times like these may be challenging, and you may have to be prepared to give up certain conditions to secure the deal. It may be discouraging to see the market move so fast, however, there certainly will be other opportunities.

Sellers in a seller’s market: Now is a great time to list your property! The market allows you to mark your home for a greater price (within fair market value). Even in a seller’s market, a drastically overpriced home will be at a disadvantage when compared to other similar homes.

Regardless of which market you are in, hiring a realtor is the best way to understand the current market and what you should do.