Do you feel prepared to buy or sell at the right time?
Buying or selling a house can be very stressful. However, it does not have to be. Understanding your current local housing market is very important when exploring your options for selling or buying a home. With the proper knowledge of the differences between a buyer’s market and a seller’s market, you can buy the house of your dreams or sell yours at a good price while knowing you did it at a great time.
“Seller’s market” – A seller’s market exists when there are fewer homes for sale than there are buyers looking to purchase property.
- Market is competitive among buyers, so sellers can try to get the best possible price for their home. Sellers have negotiating power when it comes to home repairs post-inspection.
- If a home remains on the market too long in this climate, it may come across as a red flag. Buyers will want to see the value in the home they are purchasing, so it will still require effort to get your best deal.
- If you are buying in a seller’s market, you may have to deal with competing bids. It could be beneficial to have price limits based on what you can afford.
- A preapproved mortgage can tell the seller that you are motivated to buy and capable of affording the payment.
“Buyer’s market” – A buyer’s market exists when there are more homes for sale than there are buyers looking to purchase property.
- In a buyer’s market, prices will decrease, and more homes will linger on the market. A seller might have to compete with other properties to sell their home, and may be more willing to accept an offer below asking price.
- Those looking to buy can try to take their time to know what’s available. This can give you knowledge of comparable properties, which helps for negotiations. It can also help ensure that you find the ideal home for you!
- If you are selling in a buyer’s market, it could be beneficial to financially prepare for repairs and other concessions during the closing process. It might require you to lower the price or make costly repairs right before handing over the keys.
There are also ways for you to figure out if now is a good time to buy or a good time to sell. If you are looking to buy, consider looking for an abundance of homes selling slowly and at below market value. If you are looking to sell, take note of when the opposite happens: few homes selling very quickly at high prices. The transfer of property can seem tricky, but with a little bit of knowledge, you can get the deal you’re looking for!
If you have questions about residential mortgage information, contact one of our mortgage experts!