What is a Buyer’s Market and What are the Advantages?

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Real Estate Agent with Berkshire Hathaway HomeServices 2013000048

Whether you are a new home buyer or seasoned investor, you may have heard the term “buyer’s market”. This term is used to refer to a real estate market in which there are more units for sale than buyers. Home buyers can see big advantages in this type of market!

 

Higher Inventory
A buyer’s market involves a higher supply of housing units in comparison to the number of buyers at a given time. As such, the buyer will have a larger variety of units to consider for purchase in such a market. More choices is always a positive.

 

Lower Prices
Since the real estate market abides by the same laws of demand as other markets, a higher level of supply compared to demand means that prices will drop. Therefore home buyers will see lower asking prices in this type of market and may be able to negotiate even lower sales prices.

 

Favorable Terms
Since sellers know buyers have many options, they are usually more willing to concede to buyer’s terms such as close times, paying some of the buyer’s closing costs and even leaving chattel such as appliances or furniture.

 

Time to Decide
Since there are less buyers competing for the same units, a buyer can take their time when considering available options. This may allow time for repeat visits as well as inspections, financing, etc.

 

Real estate markets go in cycles so it will sometimes be a buyer’s market and other times it will be a seller’s market. When it is a buyer’s market, home buyers should understand that they have the upper hand in the market!

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Rainer
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Rose Mary Justice
Synergy Realty Pros - Dandridge, TN
Synergy Realty Pros

We just came out of a buyers market and now a sellers market is in full swing here in TN.  Low inventory has made it difficult to get buyers into homes.

There is no time for a buyer to lag behind because someone else is waiting in the wings to swoop up the home.

Nov 20, 2016 12:01 PM #1
Rainmaker
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Joseph Zingales
Berkshire Hathaway HomeServices - Concord Township, OH

Thank you for your reply. I agree with your assessment of a seller's market. In Cleveland Ohio, we have been in a seller's market for a couple of years now and it is frustrating when we have buyers who want to purchase but there is not enough properties to choose from.

Nov 27, 2016 10:51 PM #2
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Rainmaker
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Joseph Zingales

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