Seller’s Market Definition
Seller’s markets occur when demand exceeds supply. For Example, there are more buyers seeking to purchase, than homes for sale on the market. This often leads to multiple buyers interested in a single property, resulting in bidding wars or highest and best scenarios.
Seller’s Markets For Sellers
A seller’s market is a fantastic time to sell your home. You can secure a sale price that’s higher than your listing price, or at least more than your bottom line (the lowest price you’d be willing to accept for your home).
Homes still need to be appraised for those using financing. If you are lucky enough to have a cash buy, this does not typically come into play.
Sellers should make sure their agents are creative in how they counter and accept purchase agreements. A good Realtor (Listing Realtor) knows how to handle purchase agreements in this type of market.
Seller’s Markets For Buyers
If you are buying a home in a seller’s market, be aware that the seller has the advantage. If buyers are interested in the same property they will all want to get an offer in as soon as possible. In fact, you could lose the opportunity to purchase the property altogether if a competing buyer makes a higher offer. A seasoned Realtor works to win when competing in a sellers’ market.
Even with the offer not being the highest, there are statements and offers that can be built to get to the bottom line and add value to the seller.
During a seller’s market, buyers may feel as though they are getting taken advantage of, and that may be accurate. Seller’s and the Realtors monitor the market and will know when the tide turns. Remember that markets will flip and become buyer’s markets too.
Ultimately, You can push through these markets on either side. Missing out on your dream home for a higher offer should never be a factor that stops you from buying.