A Buyer’s Market VS A Seller’s Market
You may have heard the phrase “it is a seller market out there” or “it is a buyers market right now” in real estate. These terms can be confusing, so let’s break them down and explain what they mean, and what the differences are between the two.
It’s a Buyer’s Market Out There!
When someone says it is “a buyer’s market out there,” they are alluding to the fact that there are conditions often considered favorable to buyers, such as an over-flooded housing market, or other factors that would drive down the price of real estate. When it is a buyer’s market it means that the buyer has more choices for where and how to buy a home than they usually would. Experts suggest that for the market to swing in the favor of the buyer, houses and other real estate need to sit for longer periods of time, thus driving the price down. If potential buyers have the time to wait and watch the market, many will do so in order to buy during a more favorable fluctuation. For example, the colder months of the year are notoriously slows times for the real estate market, making it a smart time to search for San Marcos houses for sale.
It’s a Seller’s Market Out There!
When existing real estate conditions create a seller’s market, it simply means that there is a housing shortage in relation to buyers. Because of this, buyers have to fight to get into the property. In addition, the market prices are generally higher than they are on average, because sellers can make money off the shortage faced by buyers trying to find a home in a tight market. For those selling property, waiting to sell until seller’s market conditions exist can result in additional profit from the sale. These are the ideal times to sell your real estate in San Marcos, TX. However, when the market is not in your favor as a buyer, if you can afford to wait, doing so until the market swings in your favor can save money on your real estate venture.
How to Tell Which Market is Up
Simply put, do some research. Find an area you want to live in and see how many houses are for sale. Look at what the buyer is asking for versus the actual value of the home. If the asking price is lower than the projected value, a buyers market exists. If the asking price is higher than the value of the home, then it is a seller’s market. The bottom line is this: when you are ready to buy a home, do your research to get the best value out of your home sale or real estate purchase. However, remember that while the type of market can be a factor, don’t let it keep you from finding your dream home. In addition, those with homes for sale don’t necessarily need to wait for a seller’s market in order to sell their property.
For more information about San Marcos real estate markets, or to speak to experienced real estate agents in San Marcos, contact The Damron Group REALTORS.