What You Need to Know About A Buyers Market
When the property market swings to favour buyers, getting a good price for your home is hard. Some sellers even find that it takes months to even receive an offer.
A buyer’s market is a situation in which supply exceeds demand, giving purchasers an advantage over sellers in price negotiations.
The term “buyer’s market” is commonly used to describe real estate markets, but it could be applied anywhere.
The opposite of a buyer’s market is a seller’s market, a situation in which demand exceeds supply and owners have an advantage over buyers in price negotiations.
Here is a look at more things you need to know about a buyers’ market.
When Is It A Buyers’ Market
In a real estate buyer’s market, houses tend to sell for less and are on the market much longer before receiving an offer. The competition in the marketplace exists between sellers, who often must engage in a price war to entice buyers to make offers on their homes.
Benefit for A Buyer
Although many see buyer’s market as something negative from an economic standpoint, there are a few benefits that buyers should take advantage of.
As there are more sellers than buyers it shifts the pressure off the buyer onto the seller, therefore giving the buyer more time to look around and find the home or investment he/she really wants.
In a real estate buyer’s market, houses tend to sell for less and are on the market much longer before receiving an offer.
This Is How You Can Shop in A Buyers’ Market
In a property market where buyers are spoilt for choice, finding the right home can actually be overwhelming – because there are so many choices.
Here are two tips for you to look at if you happen to find yourself in a buyers’ market.
- Widen Your Search
When you are looking for a home that’s up to R2,5m, widen your search to include properties that are priced higher. Be bold – shift the parameters up to 3,5m. Sort the properties by price when you have done your search. Remember, sellers are likely adjusting their prices constantly and are more likely to accept lower offers. You never know what you might find.
- Make Bold Offers
A seller can choose not to accept this offer, but you might get lucky and strike a bargain. If your offer is not accepted, you can simply move on to the next one.
Whether you are a buyer or a seller, it is vital to know what phase of the market you are dealing with as that will determine your approach. The other thing to consider is that markets change.
If it is a buyer’s market, sellers should consider their situation carefully before making any decisions. On the other hand, buyers should be wise and invest where they know the property will retain its value.