–<\/span><\/p>\nWhy a Buyer\u2019s Market Turns Into a Seller\u2019s Market<\/b><\/h3>\n
It\u2019s important to note that the real estate market is cyclical. Therefore, just because it\u2019s currently a buyer\u2019s market doesn\u2019t mean it will be this way forever. Since housing markets are based on supply and demand, both of which fluctuate, a buyer\u2019s market can quickly turn into a seller\u2019s market and vice versa. For example, since a buyer\u2019s market is characterized by an abundance of inventory and minimal buyer interest, all it takes is a rise in buyer demand to tip the market. As soon as demand starts to increase, prices go up and the available inventory narrows. Over time, the supply can become so limited that it can\u2019t keep up with buyer demands, and that\u2019s when it becomes a seller\u2019s market. It\u2019s usually during a seller\u2019s market that developers and investors are motivated to build or renovate homes to take advantage of higher home prices, which expands the supply of homes on the market. Eventually, once the demand for new homes is largely met, it slows down. A mix of slowing demand and larger supply (thanks to the newly built or renovated homes from developers) ushers in another buyer\u2019s market.\u00a0<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” background_color=”#edf7f3″ custom_padding=”32px||32px||true|false” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” header_2_text_align=”center” header_2_text_color=”#38505b” header_2_font_size=”2.63rem” header_2_line_height=”3.75rem” max_width=”800px” module_alignment=”center” header_2_font_size_tablet=”32px” header_2_font_size_phone=”27px” header_2_font_size_last_edited=”on|phone” header_2_line_height_tablet=”3.75rem” header_2_line_height_phone=”32px” header_2_line_height_last_edited=”on|phone” global_colors_info=”{}”]<\/p>\n
\u201cIn a buyer\u2019s market, homebuyers have the upper hand. This usually leads to lower purchase prices and more advantageous sale terms for buyers. For the seller, it could result in a home sitting on the market for a longer period of time.\u201d<\/h2>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”||24px||false|false” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”23px||38px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n
How to Determine if It\u2019s a Seller\u2019s Market versus a Buyer\u2019s Market<\/h2>\n
If you\u2019re wondering whether the current market is a buyer\u2019s market or a seller\u2019s market, you\u2019ve come to the right place. By researching the following factors, you can quickly identify whether you\u2019re in a buyer\u2019s or seller\u2019s market.<\/p>\n
\u00a0–<\/span><\/p>\n\n- <\/span>Real estate inventory: Take stock of the homes currently on the market. The more there are, the higher the odds that your neighbourhood is in the midst of a buyer\u2019s market. Oppositely, if fewer homes are listed, then it\u2019s likely a seller\u2019s market. If you\u2019re having trouble determining if the number of homes on the market is high, low, or average, follow this trick: Divide the number of homes on the market by the number of homes that sold in the last month. If the sum is above seven, it\u2019s a buyer\u2019s market, below five and it\u2019s a seller\u2019s market (anything in between is a neutral market).\u00a0
\u00a0–<\/span><\/li>\n- <\/span>Recent home sales: Another indication of the market conditions is recent home sales. Research home sales of comparable properties in your neighbourhood. If you discover that many sold over asking, it\u2019s likely a seller\u2019s market. In contrast, if most sold below asking, all signs point to a buyer\u2019s market.\u00a0\u00a0
\u00a0–<\/span><\/li>\n- <\/span>Length of time on market: The number of days a home sits on the market is another way to determine market conditions. Homes sell faster in a seller\u2019s market and slower in a buyer\u2019s market. Most online real estate marketplaces will show when a house was originally listed. If this number is high, chances are it\u2019s a buyer\u2019s market.\u00a0
\u00a0–<\/span><\/li>\n- <\/span>Listing price: Analyzing the listing prices of homes in your area is another way to determine whether it\u2019s a buyer\u2019s market or a seller\u2019s market. In a buyer\u2019s market, sellers typically drop their prices. Most listings give users access to the home\u2019s price history. If you can see that the listing price has been reduced once or even multiple times, you can safely assume it\u2019s a buyer\u2019s market.\u00a0<\/li>\n<\/ul>\n
–<\/span><\/p>\n10 Tips to Sell Your Home in a Buyer\u2019s Market<\/h2>\n
Are you ready to venture forth and sell your home in a buyer\u2019s market? Fear not! By following the 10 tips below, you will vastly increase the odds of a successful home sale in a buyer\u2019s market.\u00a0<\/p>\n
–<\/span><\/p>\n1. Hire an experienced REALTOR\u00ae<\/b><\/h3>\n
The first step to successfully selling your home in a buyer\u2019s market is to hire an experienced REALTOR\u00ae. Find a REALTOR\u00ae with extensive knowledge of the local housing market and experience marketing and selling homes in a buyer\u2019s market.\u00a0<\/p>\n
–<\/span><\/p>\n2. Consider selling your home without a REALTOR\u00ae<\/b><\/h3>\n
Since you\u2019re likely to get less money for your home in a buyer\u2019s market, consider saving on costs by selling your home without a REALTOR\u00ae (known as FSBO, or for sale by owner). Although this method doesn\u2019t give you the knowledge or resources of a real estate professional, it can help you cut down on costs since you won\u2019t have to pay commission when your home is sold.\u00a0<\/p>\n
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3. Make minor repairs<\/b><\/h3>\n
Before listing your home, conduct any necessary repairs. Since buyers have more options in a buyer\u2019s market, they may be pickier. So spend the time repairing anything minor that will make your home more appealing (for example, painting or repairing window screens).\u00a0<\/p>\n
–<\/span><\/p>\n4. Renovate your home to attract buyers<\/b><\/h3>\n
Some sellers might be inclined to go a step further than making minor repairs by renovating their homes to attract buyers. If a home renovation is feasible, choose an upgrade that will add the most value to your home. Many buyers claim that the following home features are most important to them: air-conditioning, smart home technology, energy efficiency, kitchens, bathrooms (especially ensuite master bathrooms), and private backyard\/outdoor spaces.<\/p>\n
–<\/span><\/p>\n5. Hire a professional photographer to take the listing photos<\/b><\/h3>\n
\u201cA picture is worth a thousand words\u201d is a saying for a reason. Nowadays, most homebuyers start the house-hunting process online, looking at listing photos to determine if it\u2019s worth visiting a home in person. For this reason, hiring a photographer to take high-quality photos is vital.\u00a0<\/p>\n
–<\/span><\/p>\n6. Price your home competitively<\/b><\/h3>\n
Pricing a home in a buyer\u2019s market is no easy task, but getting the price right is critical in such a market. If you price it too high, you run the risk of your home sitting on the market for months. But if you price it too low, you could appear desperate, leading you to accept a price below what your home is worth. Ultimately, the best way to determine how to price your home to sell is to conduct a comparative market analysis. If you’re working with a REALTOR\u00ae, they will likely do this for you, but if not, you will need to spend time researching how much comparable homes in your area recently sold for.\u00a0<\/p>\n
\u00a0–<\/span><\/p>\nGenerally speaking, there are three main real estate pricing strategies: at market value, below market value, and above market value. Pricing above market value is typically not the best option in a buyer\u2019s market, which means you\u2019re looking at pricing it at or below market value. Pricing your home below market value (though not too much below) is often an effective way of attracting buyers. However, if you’d prefer to try pricing it at market value, consider hiring a home appraiser to visit your home and provide you with their professional opinion of its value.<\/p>\n
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