Understanding The Difference Between Buyer’s Market and Seller’s Market for More Profitability
Market trends determine how fast your property will be sold. Demand and supply are the key reasons for rate fluctuation. It decides whether you are going for a real estate deal in a seller’s market or a buyer’s market. You definitely need to understand the seller’s market vs. buyer’s market before entering the real estate industry.
What is a Seller’s Market?
In a seller’s market, there are more buyers than there are homes for sale. When demand exceeds supply, it creates a huge competition for each home. In seller’s market, seller has more negotiating power than buyer. This means that you have to pay high price to buy a less luxurious home, without having any concession.
Blackshaw Real Estate has pioneered the real estate market for more than 30 years. They have offices in many parts of Australian Capital Territory and New South Wales for taking advantage of a seller’s market. You can consult their highly qualified real estate professionals for marketing, selling, auction and other management services of any kind of your property deals.
Buying tips for a seller’s market
- You need to make a smart decision by gather all information about your home of interest. It is better to complete the deal quickly without waiting for price drop. Your delay can mean losing out on a property you love.
- Getting a pre-approval helps sellers know that you are seriously interested to buy. They can also assist you with many ideas for working out financially.
Selling tips for a seller’s market
- Make your home look more appealing to get more offers. You will have bidding war for an opportunity to earn more with more offers at hand.
- Initially, keep your price bit lower than your actual pricing. It will attract more buyers to create a huge bidding war. At the end, you will get better price than your expectations.
What is a Buyer’s Market?
A buyer’s market is opposite of a seller’s market where supply is more than demand. This means, there are more sellers to sell their homes than the buyers to buy them. Here, buyers have more negotiating power than sellers do.
Buying tips for a buyer’s market
You can look to buy those homes that have been listed for sale for a little bit time. It does not mean that old listed homes can be a wrong deal. You may get a golden deal from old lists too. Sellers of latest listings will not charge you less or give you a concession, but the old listed sellers may do so.
Selling tips for a buyer’s market
- You need to put advertisements, hire a trusted real estate agent and register on different online platforms to bring good deals for your home.
- Redecorating and refurbishing your home will be potential buyers to your doorsteps with better deals.
- Adding some incentives like providing any home appliances, kitchenwares or furniture will attract more buyers with good price.