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The Homebuying Process: Buyer’s Market or Seller’s Market?

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When you’re considering the purchase of a home, two common terms, ‘buyer’s market’ and ‘seller’s market’ definitely come into play!

With rising inflation and interest rates rising to help ease inflation, the real estate market may be about to cool from the strong seller’s market we’ve seen lately.

You may not think to ask which of the two types of conditions the housing market is in as you browse real estate listings. But you should definitely know. The difference between the two can have a big impact on what you’ll pay for a new home. It can even effect whether your offer will be accepted.

Seller’s Market

A seller’s market is what much of the country has been in for a while now. In a seller’s market, the advantage is on the seller. That means, of course, the disadvantage is on the buyer.

Both types of markets rely on the classic principle of supply and demand.

When the seller has the advantage, that means there’s more demand than supply. The number of people hoping to buy a home exceeds the number of good choices available.

For the seller, that means they can usually get away with asking a greater price. A home that might have normally appreciated in value by $25,000 in a more balanced market might suddenly appreciate by $50,000 or more.

For the buyer, there can be trouble. The homes they want in the area they want to live in may be out of their reach because of high prices. When they find something they can afford, they may be outbid by those offering more.

Bidding wars in cases like this only add to the money the seller makes. Likewise, they add to the debt the buyer will have to pay off.

If you own a home and are trying to sell, you definitely want a seller’s market!

Buyer’s Market

The buyer’s market, then, places the advantage on those who want to buy a home.

In a buyer’s market, there are more available homes for sale in an given area than there are customers wanting to make an offer. That means buyers can get better deals on homes.

For sellers, unfortunately, that means they may not get their asking price. In fact, they may have to slash their asking price if they really want to sell. If they’re relocating and can’t wait for the seller to get the advantage, they may get substantially lower than their asking price.

They will then have to hope that the area they’re moving to will likewise be a buyer’s market.


The terms are important because when the market advantage falls on your side of the equation, you’ll get the best results.

the authorPatrick
Patrick is a Christian with more than 30 years experience in professional writing, producing and marketing. His professional background also includes social media, reporting for broadcast television and the web, directing, videography and photography. He enjoys getting to know people over coffee and spending time with his dog.

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