Are we in a buyer’s or seller’s market?

Conditions in real estate go in cycles and buyer’s and seller’s markets are usually measured in months or even years. And it’s usually easy to tell whether the buyer or the seller has the advantage. Emphasis on usually…

The different markets are easy enough to define. When there are more homes for sale than buyers looking for a home, it’s a buyer’s market. Supply is greater than demand, and it follows that homes will be lower priced, making it a more attractive time for buyers.

By contrast, a seller's market occurs when the number of buyers outnumbers the number of homes available. This leads to sellers receiving offers from a number of different buyers, which can drive up prices.

Conditions in the market are volatile today. Industry experts debate on whether it’s a buyer’s or seller’s market. But one thing they can agree on – these days it’s almost impossible to predict from month to month what is going to happen.

No matter which market we’re in, whether you’re a buyer or seller, there are some things you can do to give yourself an advantage.

If you’re a buyer in a seller’s market

• Get pre-qualified and have your lender write a letter indicating that amount. Strengthen your offer by submitting that letter with your offer.


• Make your first offer your best offer. You’ll want to try to avoid negotiation. If you are competing with others for this home, you may not get a second chance.


• Avoid including items in the offer asking the seller to pay fees usually paid by the buyer.


• Showing some flexibility on the closing date is a favor to the seller; it gives them time to relocate.


• Shorter inspection deadlines may make your offer more attractive.


• If possible, try to have a larger than required down payment.

If you’re a seller in a buyer’s market

• Visit open houses in the area to determine if your house measures up to the competition.


• Make sure your home looks its best inside and out.


• Set a realistic price and make sure you are competitive.


• Consider offering incentives such as leaving appliances or furnishings or specific items such as pool tables or décor unique to the home.


• Be prepared to negotiate on price, closing date, needed repairs or allowances. In a buyer’s market, you never know when you’ll see another offer.

No matter which market we’re in… or whether you’re a buyer or seller… it’s a good idea to consult the experts. Your REALTOR® will help you determine the best course of action.