What's the Difference Between a Buyer's Market and a Seller's Market? | Trusted American Mortgage
If you’ve ever purchased or sold a home, you are probably familiar with the terms “buyer’s market” and “seller’s market.” But have you ever stopped to consider what those phrases actually mean?
Our team at Trusted American Mortgage wants to take a few minutes to break it down for you. Read on as we share some insight.
Buyer’s Market vs. Seller’s Market
It’s probably fairly common sense to know that the two phrases mean one market is beneficial for home buyers and one is beneficial for home sellers. But how so? And what do these types of markets mean for people looking to buy or sell a home?
First things first, let’s put a definition with the phrases:
A buyer’s market describes a time period when there are more homes for sale than there are buyers looking for homes.
A seller’s market describes a time period when there are fewer homes for sale than there are buyers looking for homes.
What the Markets Mean for You If You’re Looking to Sell
If you aren’t quite sure whether the time is right to sell your home, you want to consider whether you’re in a seller’s market time period. When it’s a seller’s market, that means your home will be a hot commodity, because there are so many people looking for homes.
That often translates to bidding wars, where multiple potential buyers bid against each other to become the lucky winner of your home. That translates to a higher sale price for you—and potentially more money in your wallet.
On the other hand, if it’s a buyer’s market, you may want to reconsider selling your home, if possible. Your home will be one of many options, making it less likely that it will sell in a timely manner and for the price you’d like.
What the Markets Mean for You If You’re Looking to Buy
If you’re looking to buy a home, ideally, you’d wait until it’s a buyer’s market. During that time period, there will be more options out there to look at and more price points available.
That means you will be more apt to find a home within an affordable price range that also meets your needs and wants.
During a seller’s market, on the other hand, you could end up paying much more than you anticipated due to an overabundance of competition—other buyers looking for homes.
When you’re ready to buy a home, we’re here for you! Give us a call today to get started.