Buyers Market
If you have heard people talking about when is the best time to buy real estate, you have likely heard the following:
“It’s a buyers’ market.’
However, aside from that, people don’t often take the time to break down what a buyers’ market is and how they can signal a great time to buy real estate.
So, let’s take a moment to walk through the market conditions that make up a buyers’ market and how they can help you make more innovative investments today.
But first, regardless of market conditions, the odds are that you will want to secure financing to invest in real estate. So, if you are ready to start today, click the link below for a free strategy call with our team at LendCity today.
What is a Buyers’ Market
A buyers’ market is a period in a particular real estate market where buyers can expect to experience the most buying power.
This means that many people who plan on buying real estate keep their eyes out for periods in the year when they can get the best investments for the least amount of money.
While these conditions can present themselves at any point in the year, many new investors are surprised that there is often a dedicated point when you can expect the market to favour buyers – the spring market.
Since many people want to avoid dealing with the hassle of buying and selling properties during the winter holidays, the spring market is the buyer-friendly period when activity begins to surge again.
Can You Spot the Signs of a Buyer’s Market
One of the critical signs of a buyers’ market is an increase in housing being listed for sale. After all, buyers want power over more than just real estate prices; they also desire the best selection of properties.
Also, since so many properties are on the market during these periods, you will often find that listing prices will dip so that sellers can try to appeal to buyers.
On top of that, despite listing prices being lower on average, these periods also provide the most room for negotiation for buyers since they can quickly go and find another property to buy. This leads to many cases of properties selling below the initial asking price.
How a Buyer’s Market Impacts the Home Selling Process
For sellers, a buyers’ market naturally is not the ideal time since they are unlikely to get the highest price for their property. However, since most sellers cannot afford the time and money needed to hold off on a sale, they must learn how to make the most of it anyway.
While many sellers try to price their properties low, that does not mean you need to immediately drop the price to the lowest possible value you will accept – especially since buyers will likely try to negotiate it lower.
Instead, look for properties comparable to yours and – if you can afford to – list them at a lower price than those properties. This means that not only will people see your property first if they sort their MLS listings by price (which most people do), but you are also likely to get more offers.
By creating a multiple-offer scenario, you increase the odds of getting a buyer who bids over-asking and gives you the price you want.
If You Are Ready to Invest
Suppose you are ready to invest, regardless of whether you are currently in a buyers’ or a sellers’ market, you will need substantial financing from the best available lenders and products. So, we would like to help you get started the right way.
All you need to do to begin the process today is click the link below for a free strategy call with our team at LendCity.