If you’ve spent enough time researching the housing market and getting acquainted with different terms, you’ve likely heard of the terms buyer’s market and seller’s market. What do those terms mean, and why are they important to understand and compete against?

A buyer’s market is a type of market in which there is more supply of homes than demand. When there are far more homes available on the market – particularly ones that have stayed on the market a long time – buyers have advantages that they otherwise wouldn’t have in a seller’s market. A seller’s market, by contrast, refers to a type of market in which the demand of available homes outweighs the supply. So, what are some other differences between the two?

Financial power

Similar to what was stated above, one key difference between both markets revolves around who holds the most swaying power in the negotiation process. In a buyer’s market, home buyers have an advantage due to the immense number of available homes on the market. Sellers have to up their game in order to make their home stand out above the rest if they want any hope of selling. Buyers also have an easier time demanding certain contingencies, like home inspections, be met in order to move further into the purchasing process of a home.

By contrast, a seller’s market gives home sellers the advantage because of how quickly houses sell in a hot market. Because of this, buyers have to prepare themselves to pay premium prices if they truly want to succeed in standing out among a list of competing buyers. Buyers also have to be less picky about contingencies if they want to have a chance at purchasing a home in a market that demands relatively quick choices.

Marketing

No matter what type of market you find yourself in, marketing a home properly is important to gain enough appeal and sell the home. However, in a buyer’s market, that’s even more true for home sellers. Due to the number of homes on the market, a seller truly has to offer enough information and appealing photos to convince buyers their home is better than anyone else’s. By contrast, a seller’s market gives the home seller a bit more leniency when it comes to marketing due to the intense demand and competition among home buyers; however, it’s still important to do some basic marketing and achieve success.

In today’s crazy seller’s market, buyers need to be prepared for all types of sellers and offers. For more information on getting your offer to stand out on a new Mesquite home or property, contact our office today!