A seller’s market vs a buyer’s market impacts the homebuying process greatly. How soon to tour a home or the strategy to make an offer is dictated by the real estate market conditions. Below is a clear and simple chart explaining the difference and how it impacts the approach to home buying and home selling.
|Buyer’s Market||Seller’s Market|
|There are more sellers wanting to sell their home than there are buyers wanting to purchase a home.||There are more buyers wanting to purchase a home than there are sellers wanting to sell their home.|
|Buyers have an advantage in negotiations because there is fierce competition amongst sellers and little competition with other buyers.||Sellers have an advantage in negotiations because there is fierce competition amongst buyers and little competition with other sellers.|
|Homes sell slowly and less likely to have multiple offers.||Homes sell very fast and often get multiple offers.|
|Few homes are sold “as-is” because sellers need to make homes enticing to attract buyers.||There is an increase in homes sold “as-is” because sellers know there are few options for buyers.|
|Sellers are more likely to be flexible with buyer contingencies. Contingencies may not necessarily weaken the offer.||Sellers are less likely to be flexible with buyer contingencies. Removing contingencies strengthens an offer.|
|Homes tend to sell for list price or less than list price.||Homes tend to sell for thousands above list price.|
|Lower likelihood that your first offer will be rejected.||Higher likelihood that your first offer (or several set of offers) will be rejected.|
Thinking about buying or selling a home in the Houston area and want a local to guide you through the process?