Buyers Market Sellers Market, What Does It All Mean?

If you’ve ever as much as considered buying or selling real estate, you have likely heard the terms buyers market and sellers market. To some folks these terms may be self explanatory. To others however they can be a little confusing and understandably so. Whether you do understand these terms or not, either way they are a very important factor to be considered when buying or selling real estate. Knowing the difference and how to navigate either market could save you thousands.

The real estate market overall is effected by many different factors such as interest rates and inventory. But for this article I’m going to skip all the boring stats and details and simply explain what these terms may mean to you as a buyer or seller and what you can do to improve your position in either.

First of all You should know that the real estate market is very much local. And the markets can vary widely between homes, land and commercial property in the same area. The property that your interest is in may be in a totally different type of market than others just a few miles away.  so when researching the market, it’s important to make sure any stats you base a decision on are narrowed down at least to the zip code. This is where a good local real estate agent can be very valuable to you. But if you chose to go it alone, is one place to find reasonably up to date, stats by zip code.

Buyers Market

Buyers market simply means that there are more sellers in the market than buyers. This usually means lower prices and puts the buyer in a better position to negotiate price and terms than the seller.

As a seller in a buyers market, you may be able to improve your position and price, by heavily marketing those points that make your property stand out over others, making improvements or offering terms. For those who may be able or prefer offering terms such as partial or complete owner financing, this may be particularly effective in getting a much better price.

Sellers Market 

In a sellers market there are of coarse more buyers than sellers. This means that prices are rising and the seller is in the dominant position.

As a buyer in a sellers market, normally this means that your biggest competition is going to come more from other buyers, rather than with the seller. You can improve your position in this situation by being more prepared to purchase and close quickly once you locate the property that you want to buy. Of course the best scenario is to have cash on hand. However this is not possible for most buyers. So make sure that you’re pre approved for your loan, have all resources for due diligence in place and able to close quickly.


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