September 21st, 2019 11:11 AM by Jackie A. Graves
Buying or selling a home can be a lot like playing a game of
cards: You gotta know when to hold ’em and when to fold ’em. To determine the best moments to buy and sell, most people look to the
real estate market—whether it's a buyer's market or a seller's market.
is a buyer's market? And to what degree should you plan to buy or sell based
on the type of market you're in? We gathered a team of real estate pros to
break it all down.
might have guessed, a buyer’s market favors buyers, not sellers. But what, exactly, does that mean?
“It means external conditions—like supply and
demand, comparable sales in the neighborhood, the economy, public opinion,
confidence in the future, and changes in the tax laws—favor buyers," says Robert Elson, a real estate
agent with Warburg Realty in New York.
These factors create an ideal scenario for buyers in the real
we go through a period of approximately six months—or longer—where we see
prices start to steadily soften as time goes by, coupled with rising inventory
and interest rates dropping,” says Bill Kowalczuk, a
broker at Warburg Realty. When this happens, buyers have many more properties
to choose from.
greater the rise in inventory, the more negotiable the properties become,” he
buyer’s market, buyers are more likely to get a sweet deal on a purchase.
are in the market for a new home, it’s an ideal time to make your move,"
Skurnik, a licensed real estate salesperson at Citi Habitats in
"You may be able to use the excess inventory to your advantage and secure
your dream home for a lower price,” Skurnik says.
because the market is less competitive, he says you are likely to have more
time to make a decision and less chance of getting caught up in a bidding war.
be able to finagle some additional perks, as well.
little competition, buyers can negotiate with sellers to include a home
warranty, cover part of the closing costs," says Candice
Williams, a Re/Max Space Center realtor in League City, TX.
buyers in this situation typically control the closing date, she says.
get too excited. No one’s giving their home away in a buyer’s market. While you
may get a deal, you may not get a steal.
budget allows for $800K, don’t aggressively go after million-dollar
properties,” warns Daniele Kurzweil,
a licensed real estate salesperson with the Friedman Team at Compass in NYC.
It's still smart to stick to your budget, so you can avoid financial trouble if
the markets shift in the future.
can imagine, a buyer’s market is not a particularly good time for sellers.
so many other sellers are competing for the same group of buyers, sellers may
find their properties languishing on the market, sometimes for a year or more,”
Hertz, licensed associate real estate broker at Engel &
Völkers New York Real Estate.
It can be
advantageous to make sure your home is move-in ready and shows well in
photos. If the home isn’t move-in ready, Williams says sellers should be open
to offering additional concessions, such as paying closing costs or a carpet or
your home has a unique or uncommon feature—a larger than average backyard,
secret room, etc.—it's important to highlight that feature to buyers,” Williams
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