If you are planning to purchase a house, it’s important to know the right timing to enter the market to avoid being left behind. There are two types of markets you have to know about: the buyer’s market, which caters to people who want to buy a home, and the seller’s market, which is perfect for people who are ready to sell their home.
Find out the differences between buyer’s market and seller’s market as well as some strategies to help you negotiate and land a good deal.
Buyer’s market
A buyer’s market occurs when a real estate supply exceeds the number of buyers. This is the perfect time for homebuyers to enter the market due to decreased prices and more houses on sale. As there are a lot of options, both buyers and sellers can negotiate for other prices and offers to maximize the market and close a deal.
How to Know if it’s A Buyer’s Market
- Lots of houses are on sale in the market
- Houses are sold slowly and below the list price
- Prices continue to drop
Home Buying Tips in a Buyer’s Market
- Negotiate an offer that’s less than the asking price, due to the decreasing prices asking for a discount is commonly done
- Ask the seller for other concessions (closing costs, closing date flexibility, inclusions of appliances and furniture, repairs and renovation)
- Know your options and compare deals, it’s your market as a homebuyer so you have to take your time selecting the best offer
Seller’s market
A seller’s market happens when the real estate inventory is low and the amount of homebuyers is high. This is the right time for sellers to come in since homes sell faster and many buyers are interested and willing to spend more. In this market, lots of bidding wars (multiple buyers competing for the same property) occur since there is a shortage of housing.
How to know if it’s a seller’s market
- Homes sell fast, leading to fewer options in the market
- Houses are sold above the list price
- Prices continue to rise
Home buying tips in a seller’s market
- Brace yourself for bidding wars by deciding on a price limit based on what you can afford
- Prepare your good offers (getting pre-approved for a mortgage, strong finances, etc.)
- Act fast so you can buy your dream house before anyone else, too much waiting can let a good deal slip so you have to grab it before it’s gone
Take advantage of the right market
Knowing when to enter the market depending on your needs is crucial to a good deal. A buyer’s market and seller’s market are all about the supply and demand of homebuyers and properties, so as a home buyer, you have to get ahead by analyzing these changes before diving in.
Are you ready for the buyer’s market?
Let us help you find the right timing to enter the real estate market. Get a free consultation from the buyer’s agents at Buying Perth Real Estate. Contact Clive at clive@buyingperthrealestate.com or give us a call at (08) 6215 0200 or 0412 926 190.