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New York saw the median house price jump 12.1 percent since November to $370,000. It appears the New York housing market continues to show robust action with real estate prices on the rise.
That’s surely a good thing for sellers but what about buyers? What indicators tell you it’s a buyer’s market?
If you’ve heard those terms, buyer’s market and seller’s market, you might wonder how to identify the different market indicators.
Read on to learn more about a buyer’s market vs a seller’s market. Get some tips for buying and selling, no matter what’s happening in the housing market.
What Is A Buyer’s Market?
If you’re in the market to purchase a home, a good time to do it is during a buyer’s market. During a buyer’s market, there are more homes available for sale than potential buyers.
As a buyer, this can mean a few things. You have more options when you’re ready to buy. Often in a buyer’s market, there are more homes on the market available than buyers who need them.
With a surplus of homes on the market, it can also mean that sellers may need to be more flexible in their pricing and be prepared for the sale to take a little longer.
Seller Tips For A Buyer’s Market
If you’re a seller in a buyer’s market, you want to do what you can to make sure you make your home as competitive as possible. When you list your home, you want it to present as strongly as possible.
Before you list, check out the competition in the same price range. What can you feature in your home that makes it stand out from the competition?
You might also want to prepare for making concessions when the time to sell comes. If you’re able to offer some financial incentives that make your home stand out, you may sell faster. This might include offering to help pay for closing costs or certain home repairs.
It can also make buyers take note if you offer a pre-inspection report. They can learn all about your house right away and it might eliminate any potential concerns that might arise about your house.
Buyer Tips For A Buyer’s Market
If you’re ready to buy, it’s good to be in a buyer’s market. You’ll have more choices and more negotiating power.
When you find the house you want to buy, you can offer less than the asking price and even ask for concessions like offering to pay for closing costs.
If the home needs repairs, you can ask the seller to help cover the costs. If they know there’s lots of competition, they might be willing to cover costs or be more flexible in pricing.
What Is A Seller’s Market?
If you’re considering a move, a good time to sell is in a seller’s market. In a seller’s market, there are fewer homes available for sale than can fulfill the demand for homes.
It means buyers will be more assertive in making offers and it’s likely your house won’t be on the market for long.
Being a buyer in a seller’s market can be a tough spot to be in. You’ll have to be prepared to move quickly and make an offer that could beat out other buyers.
Buyer’s Tips For A Seller’s Market
As a buyer in a seller’s market, you need to be prepared that the sellers have more negotiating power than you.
As a buyer, you should have a good idea about what you want in a house. You also need to have a good handle on your finances, what you can afford. You may end up needing a high bid, so you need to know exactly your financial parameters.
Before you begin looking for a home, you’ll want to get pre-approved for a mortgage. This will help you to know exactly what you can afford and the price range for homes to consider.
Once you’re pre-approved, you’ll want to be prepared to act quickly if you find the right home. In a buyer’s market, homes tend to sell quickly, so you need to act quickly when you find the right house.
You should also be prepared for a potential bidding war. If multiple people want the house, a bidding war for the house could happen.
The best advice for this is to make sure you know what absolute highest price you can spend. This will also keep you from spending more than you can afford.
Seller’s Tips For A Seller’s Market
Sellers in a seller’s market have a lot of control. They should be prepared to move quickly and have the advice of a good realtor to guide them through potential bids coming their way.
Be sure to price the home correctly. Ask your realtor to use market data to get the right price on your home when you list it.
If you receive multiple offers, you want to consider the offer beyond price. Which offer will make for the easiest sale for you?
You should also be prepared to move quickly. In a seller’s market, often homes sell fast. If you’re buying another home, be prepared for where you’re going when you list your current home.
Buyer’s Market vs Seller’s Market
The key difference between a buyer’s market and a seller’s market has to do with supply. A real estate market is dependent on the number of homes available compared to the number of buyers for those homes.
Buyer’s vs seller’s markets also vary in their negotiating power. Depending on the market, buyers or sellers have a little more control in the home sale process.
In today’s competitive home market, sellers have a real advantage because there are more buyers than sellers.
Buyer’s Market Or Seller’s Market, Who Has The Advantage?
The housing market in NY is a competitive one. A buyer’s market vs a seller’s market can make all the difference in price and how quickly the home sells.
Whether you’re ready to sell, or you’re considering buying a new home, we can help. Contact us today to get started. We can help you sell or find your dream home.
