Dear Olivia,
I keep hearing that we’re in a seller’s market. As a potential buyer, what does that mean for me?
Sincerely,
Looking to Buy
First things first, let’s define what a seller’s market means.
When there’s a seller’s market, there is more demand than inventory. This means that buyers are competing with one another for the properties that are available.
This is the opposite of a buyer’s market. In that situation, inventory exceeds demand, which gives buyers the balance of power.
So, what does this mean for you as a buyer in a seller’s market?
Since there are fewer properties, you may or may not find a home that meets your list of needs and wants. This makes sense because the fewer homes there are available, the less likely it is that you’ll find your dream home. This doesn’t mean it’s impossible, but you might have to be willing to compromise a little more on your wish list than if we were in a buyer’s market.
The second way that a seller’s market impacts you as a buyer is that there is increased competition for the properties that are available. This means that a home you like might already have an offer by the time you decide to put an offer in. If there are multiple offers on the table, it could result in a bidding war with another buyer, which drives up the price of the home.
This isn’t to say that you’ll end up having to offer $5,000 or $10,000 over asking price, but you should be prepared for terms that favor the seller. For example, the seller might want a faster close than you outlined in your offer.
Something else to be aware of is that in a seller’s market some homes go from “just listed” to “under contract” much, much faster than usual. In fact, homes can go under contract within a day or two. This means you need to be diligent about letting your Realtor know which homes catch your eye, that way they can get your foot in the door before it’s too late.
Of course, if you currently own a home, a seller’s market is great because you might find that your home goes under contract quickly. Getting the timing right of selling your home and buying a new one can be tricky, but that’s what Realtors are for!
If you have other questions about current market conditions, don’t hesitate to reach out to me at 307-856-3999!
~Olivia