Real Estate 101 – Understanding a Buyers’ Market

Similar to the stock market, the real estate market is one that continually fluctuates. There are times where it will be a high and good, and then there will be times it will be at a low. For those who may not have experience in real estate or what buying and selling entails, a term that may be heard is “buyers’ market.”

What is a buyers’ market? 

A buyers’ market is when there is an influx of homes for sale to the point there are more homes than there are buyers. A buyers’ market is one that benefits someone looking to buy as it means that there are more options and choices to pick from than if it were a seller’s market.

When the real estate landscape is in a buyers’ market state, not only are there more homes to pick from, the prices tend to be lower than initially expected. When the market is a buyers’ market, it is much harder to bounce back.

Who benefits in a buyers’ market? 

The buyers’ market benefits the buyer as the seller is at their mercy. A seller may list their home for $400,000, which is standard for homes in their neighborhood; however, in a buyers’ market, the buyer can have the ability to negotiate for less. Why? The last thing a seller wants is to lose a potential buyer to another home on the market, which means they may concede and sell for less.

With a buyers’ market, homes can sometimes stay on the market for longer because homeowners refuse to sell below their asking. In essence, this can be dangerous for the value of the home.

How to benefit from a buyers’ market?

If you are a seller looking to benefit from a buyers’ market, consider the following:

• Hold off on selling – If you aren’t in a rush to sell, consider holding back and waiting a bit longer until it becomes a seller’s market.
• Price strategically – Remember that in a buyers’ market, price is everything. You want to make sure that you price your home so that you can still profit and sell to a potential buyer without having to take too much of a hit.
• Follow the real estate market – Regardless of the city you are in or neighborhood, take the time to follow the real estate market. This can include consulting with a broker or just paying attention to the news.

Whether you are looking to buy or sell, understanding the basics of real estate will only benefit you. Why? For one thing, when you know the key terms and how things fluctuate, you will be better positioned for when you decide to buy or sell. This isn’t to say that if you are looking to sell or that you need to sell that you won’t get your money’s worth in a buyers’ market, what it means is that it may take some time. Things that could help your sale and the value of your home is the location and neighborhood. Living in a desirable area can keep the cost of homes high even in a buyers’ market.

Whether you’re looking to buy or sell in the Kamloops area, for a greater probability of success you need a dedicated professional. I can guide you through the process and be counted on to protect your investment!

Categorised in: Buyers, Kamloops, Real Estate, Sellers, Sellers

This post was written by kamloopshomesearchcom