Are you taking advantage of the real estate climate? Despite the current health crisis and maybe even because of it, now is a great time to buy a home. Even in normal circumstances and without issues like the pandemic, housing markets go through cycles. These cycles help you get more for your money when buying a home or receive a greater return on your investment when selling. You simply have to work with a great realty agent to understand which cycle your local market is in and when to take advantage of your maximum benefit.

What is a buyer's market?

The property market balances on the laws of supply and demand. A buyer's market is when supply exceeds demand. This period gives buyers an advantage over sellers. As a buyer, you can expect to get more home, land or commercial space for your money.

During a buyer's market, you can expect to compete for the property you want. But you typically have the advantage of lower interest rates during this cycle, too. A lower interest rate enables you to upgrade to a larger or better-appointed property while still staying in your budget. As a buyer, you should take advantage of low-interest rates.

What is a seller's market?

On the opposite side of a buyer's market is the seller's market cycle. This is a time when there are fewer properties available on the market and more buyers. In other words, demand exceeds supply. During this cycle, sellers can expect to have the advantage as their properties sell faster and at a higher price.

A characteristic of a seller's market is the bidding war. During housing shortages, property inventory is low. Instead of having time to make your decision, you will likely find yourself shoulder-to-shoulder with someone else wanting to make a deal on the same property. This causes property prices to increase, thus being a time when sellers should take advantage of real estate.

Taking Full Advantage of a Seller's Market

As said before, when interest rates are low, it is a great time to sell your home, land or commercial property. But you should still follow some guidelines to get the most out of your sale. These guidelines include:

Smart Pricing

Talk to a qualified and experienced agent in your market to learn how to price your property according to the current market. You have to be smart about your pricing. You do not want to scare buyers away and also to take full advantage of your selling opportunity.

If you do not price competitively, you can find your property sitting on the market for longer than it should. At that point, long availability without sale scares many buyers off before they even see the property. It makes them wonder, "What is wrong with this property since no one has purchased it yet?" Pricing too high also leads to stiff negotiations where the buyer has the advantage and can drive the price down by seeking adjustments.

Likewise, you face problems if you price too low. If no bidding war occurs, you face having to accept a low offer or none at all. Pricing can affect buyers psychologically, whether too low or too high. This is why you need a good agent who knows your area's comparable sales prices, "comps."

Staging

Stage your property well, either on your own and with your agent's input or by using a professional staging company. During this process, remove clutter and create an environment that enables buyers to see themselves owning and using the property. Staging also helps buyers visualize room sizes and how they can use the space. Staged homes sell almost 75 percent faster than unstaged properties.

Listing Date

Choose the right date to make your listing go live. Thursdays are typically a great day for this, allowing buyers to see your new listing at the top of their list over the weekend. Never list until you have enough photos, videos or a 3D interactive tour to represent the property and entice buyers to call.

Move Preparation

When selling, be ready to move out or otherwise vacate the property. Many buyers seek to balance their strong offer with your willingness to turn the property over quickly. The last thing you want is to miss the opportunity for a sale because of a great offer like this.

Offer Analysis

During a seller's market, you need an agent who looks closely at all of your offers with you to find the best fit. Not all of these options are the same, and it can be very hard to make a decision. Having an experienced agent by your side makes it easier.