Buyer's Market Versus Seller's Market

Buyer’s Market Versus Seller’s Market If you have been paying closer attention to the housing market over the last several months, you have probably been hearing the term “buyer’s market” getting tossed around from time to time. In fact, many experts have been encouraging people to make a home purchase based on the fact that it is currently a “buyer’s market.” But, what exactly is a buyer’s market and how is it different from a seller’s market? Buyer’s Market As the name suggests, a buyer’s market is a market that favors the buyer. When used in reference to the real estate industry, a buyer’s market occurs when there are more homes available for purchase than there are people interested in buying. With an overabundance of inventory on the market, it becomes more difficult for home owners to sell their homes. As a result, they reduce the prices on their homes in order to become more competitive against other sellers and to increase the chances of selling a home. In addition to enjoying lower prices, those who are interested in purchasing a home in a buyer’s market also have more negotiating power. In other words, they are more likely to get the seller to agree to additional terms when selling the house, such as including the furniture as part of the deal or agreeing to pay for inspections or other professional services. Seller’s Market On the other side of the spectrum, the housing market is referred to as a seller’s market when market conditions favor the person who is trying to sell a property. In a seller’s market, there is not enough inventory to meet the purchasing demands of buyers. As such, the sellers can command higher prices for their properties and they have more power during negotiations. In a seller’s market, the seller may be able to place the burden of paying for inspections on the buyer. In addition, the seller has more freedom to turn down offers or to refuse to work with buyers who are planning to obtain certain types of loans or who haven’t already been pre-approved for a loan. About the Author: Brian Kinkade is a broker and team lead with Brokers Guild – Cherry Creek Ltd, one of Denver's fastest growing full service Denver real estate firms. Brian's team of Internet savvy agents specialize in Denver luxury homes, International property sales, and Denver luxury short sales. Visit their advanced real estate website today to search for homes, gather local information, and learn about Denver neighborhoods. Brian and his team are ready to assist with your home purchase, property sale or Colorado relocation needs.

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