Difference Between a Buyer’s Market and a Seller’s Market
Author: Hans Anderson // Category: Real Estate InvestingIn a buyer’s market there are more properties available then buyers. Properties tend to stay on the market longer and prices go lower.
It is a lot harder to sell a home in this type of market. A market like this often forces sellers to get more creative. They may have to add incentives such as taking back a mortgage to attract buyers.
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You will get buyers who will just ask for incentives knowing that there is a seller who will be willing to meet their demands.
In a buyers market the seller usually doesn’t get the price they were asking for.
In a seller’s market, there are more buyers then homes available to purchase.
Prices will rise in this kind of market and houses will change hands a lot quicker. In this market sellers tend to get the highest value for their property.
It’s possible to have multiple buyers bidding on the same property, driving the price up. Sometimes even over the initial asking price.
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Hans Anderson
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