Recognising whether we are in a buyers market of a seller’s market is an essential part of property investment. It lets investors know when it’s time to buy, and when it is a really good time to sell. The activities of investment professionals are often influential on the market, but the trends don’t always predict what’s to come in the future.
What Is The Difference Between A Buyers Market & A Sellers Property Market?
It’s fairly simple, to be honest, but your ability to move can be significantly influenced by being interested in one or the other regardless of which side of the fence you are on.
Naturally, we will discuss what defines and differentiates the markets of buyers and sellers in a post with a title asking the ‘what is the difference’ issue, but using changing markets within the property sector will also take a look at a few tips along the way. Yeah, and there’s a third form of market that we’ll also discuss in the post later on!
Buyer’s Market vs Seller’s Housing Market?
If you want to get the best price possible, it is important to know where the property market currently stands before you decide to enter it, and that applies to both buyers and sellers. Of course, depending on the case, one form of the market would be more favourable than the other, but there are tips that can be applied to each one – even if you’re the underdog.
The first obstacle is being conscious of what kind of market you face. Here are our meanings with this in mind:
What is a buyer’s market?
In short, when there are more houses on sale than there are buyers to purchase them, a buyer’s market exists.
This firmly places the balance of power in the corner of the buyer, hence the name, since they would be able to take their time and even theoretically barter over price with sellers. For those looking to buy property, offers are there to be had, and sellers may need to try their hardest to get noticed by the very few buyers out there.
What is a seller’s market?
Unsurprisingly, the demand for a seller is the opposite: this is the equivalent of having more buyers than there are homes.
The change of authority is similarly unsurprising. In this instance, it’s the seller who has the upper hand in this type of market, and the buyers will always fight against each other for the best cuts of property market meat! This rivalry will push up costs, meaning better offers and a quicker delivery time for sellers, too.
However, as mentioned above, there is a third kind of market that is seldom spoken about.
A balanced market
Again no prizes are available to guess this one. A balanced market is just what it suggests: the number of people who want to sell property is equal to those who want to buy in the market.
Sometimes, competitive rates offered and taken at a level that fits all parties are the product of a balanced market. The time it takes for a property to sell also finds a balance, too.
So, it’s all about supply and demand?
Exactly right. The market favours the consumer when supply levels outstrip demand, and vice versa when demand is greater than supply.
However, if they find themselves on the wrong side of either market, there are a few things that both sides can do in order to change their situation.
Let’s take a peek!
How To Sell In A Seller’s Market
While some investors, buyers and sellers will hold off until the market swings back in their favour, many will discover that they are simply not in the fortunate position of being able to wait. What to do, then? It can be a little overwhelming to reach a buyer’s market as a seller, but there are a few tips you can use to support your cause:
It’s important to know that you’re entering a competitive market, but if you fail to act accordingly, the information will be useless. Setting a reasonable price from the get-go for your home will ensure that those all-important buyers get their fair share of attention from your house. Going in too high could mean that your property that is absolutely sellable is completely overlooked.
Show your home at its best
When the market is in their favour, sellers can be more blasé about the state of their house, but when it isn’t, they’d better do whatever they can to make sure it stands out from the crowd. In a difficult market, home staging and completing any obvious repairs can help your property get noticed, so make sure you do them.
Be prepared to negotiate.
No, this does not mean ignoring point one and overpricing in order to knock down the price later (this strategy is flawed for a number of reasons, by the way. Not least because the majority of interest occurs when a home is new to market). Price is a consideration, but terms can also refer to negotiations, too.
Maximise your exposure
It is fair that the more individuals who see your house, the more interest you are likely to receive (providing that so far you have followed our tips!). In the best of times, ensuring that your property is well promoted is important, but it is completely necessary for trying circumstances. Make sure your agent has all the bases covered, which nicely brings us to.
Work closely with a reputable local agent.
Oh yes. Of course, we’d say that wouldn’t we? The thing is there is little denying that it is important to do so. In so many ways, opting to instruct an agent who has outstanding local experience would benefit you.
They will not only be able to advise you on a fair starting price, but they will also have behind them a marketing team that can also put your property in front of the largest number of eyeballs.
And your local agent will usually be on good terms with the best contractors and cleaners in the region if your home needs a little TLC, as they will use them often for property maintenance purposes themselves. A successful agent will also be on hand further down the road to provide priceless advice about negotiations as well.
In short, working closely with a highly professional, reputable local agent such as Petty’s ensures that you can largely be taken care of by the top tips for selling in a buyer’s market.
Tips for buyers in a seller’s market
So how about consumers purchasing in the market for a seller? What tips and suggestions do they pay attention to? Let’s take a peek!
Work out the essentials
When entering a seller’s market, knowing precisely what you want is important. Although the thought of buying your dream home without a hitch can make you warm and fuzzy, if the market is against you, you will probably have to compromise on one or two items in fact. Before you start viewing, if you know what you should be versatile on you’ll be in a much greater place later on.
Obviously, having a lot is high on everyone’s agenda, but it’s important that buyers don’t try their luck too hard in a seller’s market. The way forward is to bid a fair price for the house, as lowball offers are likely to be rejected out of hand by sellers who may well have several buyers’ interests.
Although money most definitely speaks, people deal with individuals, so being nice can go a very long way. Be friendly if the sellers are present when you view a house. As crucial as it is for the property to make a good first impression on you, it can have an effect on the first impression you make on the seller.
Dithering is not a good idea, with multiple buyers for every house. If you like a property’s appearance, book a viewing. If you love it after seeing it, make an offer. It’s extremely likely someone else would if you don’t. This is one case where it warrants FOLO (Fear Of Losing Out)!
Although it may seem as if we are contradicting the above point, patience in the market of a seller is vital for buyers. Yes, when you find a property that meets most of your specifications, you need to act quickly, but you definitely do not need to panic. The right property will come along soon enough for you and your family, and it’s better to wait than to act hastily and regret it.
Stamp Duty Holiday
You may think that you have plenty of time to sell your property before the deadline of 31 March 2021, if you want to take advantage of the stamp duty holiday. But the March deadline doesn’t seem that far away if you take into account the average time it takes to finalise the details and complete a sale on a property once an offer is accepted is around 12 weeks. And more so if you realise that number does not provide time for your own quest for property or any of the usual obstacles along the way.