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The Real Estate Market:
The only thing constant in our markets today is change, and Real Estate is no different. The three stages, that will interest you as a buyer and or seller are: The Buyer’s Market, the Seller’s Market or in theory An Equilibrium.
The Buyer’s Market:
- This occurs when the supply of homes exceeds the demand of homes.
- Naturally, at this point the Buyer holds an upper hand in negotiating the transaction, because he/she has many homes from which they can choose from.
- However, if you are a Seller during a Buyer’s Market, you need to differentiate your home from all the others on the street.
The Seller’s Market:
- This occurs when the demand of homes exceeds the supply of homes.
- At this point, the Seller has the upper hand during the negotiations process, because they know that the Buyer does not have many homes to choose from.
- On the other hand, if you are the Buyer in a time when it is a Seller’s Market, you need to do your homework. Research as many homes as time allows, because it will increase your power during negotiations.
Equilibrium:
- This occurs when the supply of homes equals the demand.
- It is what we call a perfect market, and occurs only in theory.
- However, before the peak of either a Seller’s or a Buyer’s Market, is a calm stage, where prices are stable and homes sell within a reasonable time and at a price close to the market value.
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