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Real Estate 101: What Exactly Is A “Buyer’s Market”?

By
Real Estate Agent with PureWest Real Estate RRE-RBS-LIC-79897

Real Estate Terminology 101: What Exactly Is A “Buyer’s Market”?

Scottsdale Homes for sale

If you’ve been following the Scottsdale real estate market for any length of time, you’ve probably heard the phrase “buyer’s market” or “sellers market” at some point. And although the meaning may seem apparent, it takes some study to understand what actually constitutes a buyer’s market. Who decides whether it’s a buyer’s or seller’s market in Scottsdale Arizona? What’s the threshold for deciding between the two?

Here’s a couple of facts you need to know. Supply And Demand: Economic Factors That Govern…Everything

If you studied basic economics in school, you’ll probably remember an early lesson on supply and demand. Essentially, supply and demand are the two factors that influence what a commodity is objectively “worth” in a free market. They’re also a great way of characterizing whether a market is hot or cold, and whether or not it’s a good idea to invest in Scottsdale real estate at any particular moment in time.

In a nutshell, supply is the amount of something that is available for purchase, while demand is the amount of that same thing that people want to buy. When supply goes up while demand stays the same, buyers have more choice with respect to whom they want to buy from – and that means the price goes down because the commodity is freely available. When demand increases while supply stays the same, we see the opposite effect – the value (and price) increases because there’s not enough of the supply to go around.

The Buyer’s Market: What You Need To Know
 in Scottsdale.

Jeff Fisher Realtor

A buyer’s market is a real estate market where the supply of homes available is greater than the demand for housing – it’s a market where there are more homes for sale than there are people willing to buy. This is a great situation for buyers, because their freedom of choice gives them a significant amount of power when negotiating prices. In a buyer’s market, sellers may have to accept a lower price in order to make the sale.

How To Navigate The Buyer’s Market For buyers, the buyer’s market means lower prices and fewer bidding wars. But there are still some basic principles that savvy buyers ought to follow. Don’t lowball too far below the asking price, even if it is a buyer’s market – if homes in an area have recently been selling for $400,000 and the asking price is $450,000, offering $350,000 will only insult the buyers, and keep you looking for more time and missing out on great Scottsdale homes.

A buyer’s market means you can find your dream home at an affordable price, but there are certain nuances you’ll want to pay attention to. Your real estate agent, Jeff Fisher, can help you to read and navigate the market, which means you’ll have an easier time finding your ideal home.

Contact me your local real estate professional to learn more at 602-531-0435 or email Jeff@arizonasrealty.com

www.arizonasrealty.com

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Jeff@arizonasrealty.com

Comments (1)

Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate

Hi Jeff,  concise and to the point.  Tks for sharing with us in Ar Land.

May 24, 2016 07:23 AM