Have you ever wondered when the best time is to buy or sell a home? Pay attention to the housing market and find out whether your local area is experiencing a buyer’s market or a seller’s market. Read this article to learn about what it means to be in a buyer’s market versus a seller’s market. That way, you can try to time your real estate transaction so that you have the upper hand when it comes to property prices.
Tips for Buyers
Act fast: If you find your dream home during a seller’s market, it will behoove you to act fast. If you take too long looking over a house you know you want to buy, you may find that it’s no longer available by the time you wish to make an offer. *Get pre-approved for a loan ahead of time, so your financing is in check ASAP.*
Know you’re at a disadvantage: When it comes to making an offer, keep in mind that you’re the one at a disadvantage. Focus your attention on what’s most important to you. If you can make an all-cash offer, you should. Sellers prefer buyers who are willing to pay in cash because they don’t have to worry about the deal falling through due to issues with financing.
Be patient: If you find that you keep losing out on the homes you’re interested in, it’s crucial to be patient and not get discouraged. Inexperienced buyers caught up in bidding wars will often offer more money than a home is actually worth – or they feel comfortable spending – in order to get the home they want. That’s always a mistake.
Don’t settle: Remember, buying any property is a huge investment and often a 30-year commitment. Don’t settle on a home just because it’s cheaper. Unless you have to move immediately, it’s a much better idea to wait it out and resume your home search after the market cools down.
Tips for Sellers
Clean and organize: To begin, make sure that your home is in good condition and has been cleaned and organized before you market or show the property.
Price fairly: Even though homes tend to sell for more money in a seller’s market, it still helps to price your home fairly. If you set your asking price at or slightly below fair market value, you’re likely to attract more interested buyers.
Carefully consider offers: It’s even more important during a seller’s market that you carefully review the offers you receive. Sellers are often so focused on choosing the highest offer that they fail to examine the financial strength of each buyer. The last thing you want is to accept an unrealistic offer and be forced to put your home back on the market when the deal falls through. The longer your home is on the market, the more questionable it will seem to buyers, and the more power they will have when negotiating.
Ensure preapproval: For any buyers who require financing, you should ensure that they have been preapproved for a loan. Preapproval requires that buyers’ finances and credit history are verified, making it far more likely they’ll ultimately be able to obtain a loan for a specific amount of money.