Doubtlessly, you have heard these words over and over again in the media and from friends and acquaintances. I am sure you will also find many people willing to share their stories and/or their advice. But do you really know just what these terms mean and what expertise is needed to be successful?
In real estate terms, a buyers' market happens when there is a plentiful supply of homes and a limited number of buyers competing for those homes. Conversely, a sellers' market is a market where there are a limited number of homes and a plentiful supply of qualified buyers. Neither market demands that one side loses and one side wins. A successful sale is one in which both sides feel they have won something.
In a buyers' market, serious sellers will need to present their properties in a top-notch condition and priced very competitively in order to attract the most qualified buyers. Such a market, however, does not mean that sellers must necessarily take a much lower price or be willing to provide unlimited concessions to the buyer. Not all sellers are motivated equally and a lack of serious motivation may translate into less negotiation. In such an instance, the buyer needs to answer for himself how much he wants the property and how much he is willing to pay for it.
Similarly, in a sellers' market, a buyer may have to compete for the home he wants but he will only pay a price he feels is fair. It may take less time to sell but sellers are still bound by appraisals and market value. Everyone needs to win to make it a successful deal.
Regardless of whether you are working in a seller or buyer market, the principle of win-win remains the same. It is not the Broker's job to mount the white horse and ride into battle to slay the opponent. Both parties like to feel they have won something in the deal and not come out the loser. This is where smart negotiation comes into the picture. An experienced agent has seen all sides of both markets and can be a valuable tool when you are buying or selling.
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