Whether you are going to be buying or selling real estate, the first thing to know is what kind of market you have to work with. When things are going well in the economy, prices run high and properties sell easily. This is called a seller’s market. In this kind of market, you can afford to hold out for a higher offer if you are selling a house and do not get offered the price you want. In a seller’s market, as the name implies, sellers control the market, and can go for big profits on their properties. Buyers have to act fast to get the property they want and be willing to pay for it. If they hesitate or quibble about prices, they can be disappointed to find another buyer has snapped up their dream home, or it has gone for a higher price than they were willing to pay for it. In a seller’s market, agents often have their hands full selling properties quickly, and buyers would be wise to find an agent who can find them the best properties before others find out they are on the market.
On the other hand, when economic times are tough and there are more houses than there are buyers for them, this is called a buyer’s market. Buyers get to call the shots in this type of market. They can often barter for features they really want, for a lower price than the seller would like for the property. Buyers can afford to shop around, and sellers must be prepared to make concessions and settle for what they can get for their property. Agents have a hard job representing sellers who are unhappy with the state of the market and buyers who can afford to be picky. It is a great market to buy a home in, but a nightmare if you find yourself with a property to sell off.
The natural state of the market is to fluctuate between these two. Prices will rise and fall as the economy goes through good and bad times. Buyers and sellers must look out for good times to complete real estate transactions in a market that favors their particular goal. Agents can be very helpful in evaluating the market and assisting buyers and sellers both to take advantage of market trends and types. The wise person will make note of the trends of the market so as to accomplish their real estate transaction in the best possible time and place.