There are different types of real estate markets that offer different sets of advantages and disadvantages for both buyers and sellers. It is best to know how they work and what they offer to make the most out of every situation.
The first type is a seller’s market. This situation gives a great advantage to the sellers because demand is bigger than the supply. Homes don’t stay listed for long and usually gets sold in 6 months or less. Buyers are buying and not just browsing around which characterizes demand is way up. If you are buying at a seller’s market, make sure you get pre-approved loans because once the seller shows interest in your offer, you have to act fast before other buyers swoop in to buy the house. Refrain from offering too high of an amount just to peak the interest of the seller. You might have a hard time getting out of it. Stick to one property at a time because putting out offers on multiple homes could backfire and you could have too much to handle.
Understanding real estate markets comes with great benefits for different people and the buyer’s market is one of them. This is the 2nd type of market and it dramatically shifts the favor over to the buyers. This is the exact opposite of the first type as supply far exceeds the demand. Homes have been listed for more than 6 months and usually referred to as “reduced prices” because of the challenge to sell. Sellers are also more considerate of closing costs as they are more open to the idea of sharing them with the buyer just to sell the property. Real estate markets differ from one another and this is really a buyer’s haven as circumstances are more on their favor. Buyers could even talk to the seller on footing the bill for repairs before they move in.
The last type of situation in real estate markets is a neutral market. As the name suggests, it cancels out the favor for both the buyer and the seller. There is no upper hand in demand and supply as they are level with each other. This levels out the field and benefits both parties. Sellers are able to choose a buyer that is not dictated by an advantage and is able to offer a decent amount. Same goes for the buyers – they are comfortable in making offers because they know sellers are fair. In this type of market, patience is a virtue for both buyers and sellers.
Real estate markets are dictated by different economic factors and discerning what you are in at present could spell the difference between being able to buy at your preferred rate or getting the most out of selling your property. You just have to be more aware of the signs to know if you are in a seller’s market, a buyer’s market or a neutral market. This could give you a great idea on how you will take on the market depending if you are a buyer or a seller.
If you wish to get the best deal out of the three real estate markets, Guldi Group can assist you with your efforts. We have a team of dedicated agents that can help you buy your dream home despite the current market conditions.
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