Seller’s Versus Buyer's Market – What's the Difference?
If you could leverage the real estate market in your favor, would you?
I'm sure you've heard the term "Seller's Market" here in Orange County and wondered not only what it is, but the impact it has on you as a potential homeowner or as you consider selling.
Since 4th of July this year our market has SHIFTED from a "Seller's Market" to a "Balanced Market". Here are a few definitions and explanations to help you be educated on the industry terms as well as their effects on your pocketbook.
In a buyer's market, as a seller, you will want a real estate professional who understands how to best market your home for it to sell. As a buyer, you will want to see only the properties that best meet your needs and work with a great negotiator.
The term "market" is used in several industries and is basically the idea of, like a grocery store, where buyers and sellers meet. Supply and demand (what sellers offer and what buyers want) often dictates price.
In a buyer's real estate market, it means there are more homes available than there are buyers. It allows more freedom to home buyers, giving them the opportunity to shop housing options. Sellers in this market will likely make concessions to attract a buyer, such a lowering their listing price.
A seller's market is when inventory is low, meaning there are more interested buyers than there are attractive homes available for sale. In this market, home prices tend to be higher, but multiple offers are still made on the same property - sometimes even above list price. Prospective home buyers need to be prepared, patient, and ready to act quickly. They may need to make concessions to secure an offer.
As a seller, it is important to work with a real estate professional who understands how to price and position your home properly for the best outcome. As a buyer, a real estate agent on your side will help draft clean and fair offers to help win the best home for you.
Orange County is now shifted to a balanced market. A balanced market is when the real estate market doesn't favor the buyer or the seller. Typically, homes take 3-6 months to sell, and there is a fairly equal amount of buyers and sellers. During this time, there is more time for buyers to shop around, and negotiating skills by real estate professionals are of high value as both buyers and sellers can ask for or make concessions to create the best outcomes.
Buying or selling? Contact me today to get the results you desire.
