There are various factors and conditions in the real estate market that generally favor either buyers or sellers. Because the market is constantly changing, it is important to work with a professional Realtor who keeps abreast of current real estate trends and diligently monitors listings in your area or in the area of your relocation. Your Realtor will know what type of market you are dealing with and will help you purchase your dream home, sell your current home, or both – for the best possible price based on current market conditions.
Residential real estate professionals keep track of the number of days each property is on the market. In a typical market, it can take three to six months, or longer, to sell a home. Whenever there is more than a six-months inventory, there is a surplus, or “glut,” of homes on the market, creating what industry-insiders call a “buyer’s market.”
In a buyer’s market, there are too many properties on the market for the number of potential buyers. In this type of market, homes take longer to sell and prices fall. Sellers must work harder to sell their homes and often add incentives, such as owner financing or redecorating/upgrading credits, in order to attract buyers. In a buyer’s market, buyers may increase their demands and contingencies, sometimes even asking sellers to assume a portion of the closing costs. In such a market, sellers may realize little or no profit from the sales of their homes, or even suffer significant financial losses.
When the opposite is true, when there are fewer properties for sale than there are buyers to purchase them, the market is considered a “seller’s market.” In a seller’s market, prices tend to rise and homes sell quickly, with little or no bargaining. Sometimes homes sell in a matter of hours or days, with sellers often receiving offers at or even above their asking prices. In a seller’s market, where the inventory is low and the competition is high, buyers must be prepared to make quick decisions on properties and present offers that are substantial and well-qualified.
Many factors may affect the real estate market. If you are planning to buy or sell a home, choose a reputable, trustworthy, and experienced Realtor who will help you make a sound decision. Pick a professional who is not only responsive to your needs and circumstances, but also one who is familiar with the market conditions in your area and has an established track record and references from satisfied clients. The right Realtor will work closely with you and will be able to recommend other professionals that you will need throughout your home buying or selling process, such as mortgage brokers, inspection engineers, and attorneys. Your Realtor will coordinate and oversee all aspects of your transaction, and will work to make sure all of your real estate needs are met!