Buyer's Market vs Seller's Market Explained
What is the difference between a buyer's market and a seller's market? A buyer's market is when the buyer has the advantage and leverage in negotiations versus when the seller has the advantage and leverage. In a buyer's market, there's more housing inventory and home buyers can negotiate the prices down. Conversely, homes sell for more in a seller's market when the housing supply is low.
The marks of a buyer's market:
1) Increased inventory - More homes to choose from for buyers
2) Time on the market - Homes take longer to sell in a buyer's market
3) Decreased competition
4) Lower price in a buyer's market
5) Buyer negotiation power goes up
The marks of a seller's market:
1) Decreased inventory - There are fewer homes to sell and more buyers than homes available
2) Less time on the market - The buyer has less time to complete due diligence
3) Increased competition - Buyers are competing for the same homes
4) Higher prices in a seller's market - Competition drives the price up
5) Increased leverage for the seller and decreased leverage for the buyer - Difficult for the buyer to get desired terms
Thinking about buying or selling a home in Seattle soon? Please don't hesitate to reach out! People like you regularly contact me about their real estate goals after discovering me on KZread. I'd love to bring value to your home buying or selling experience too!
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Contact Zach:
call/text: (425) 343-3661
email: zach@mcdonaldresidential.com
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Other links you might be interested in:
August 2020 Seattle Real Estate Market Update (last month) - • Seattle Real Estate Ma...
All Seattle Real Estate Market Updates - • Seattle Real Estate Ma...
Pre-Inspection Advantages & Disadvantages - • Pros and Cons of a Pre...
Pros and Cons of an Offer Review Date - • Pros and Cons of an Of...
Why are Seattle Home Prices Increasing During a Pandemic - • Why Are Seattle Housin...
Video created by www.freestyleproduction.com
0:00 Introduction
0:31 Increased Inventory
1:36 Decreased Competition
2:04 Lower Price in a Buyers Market
2:22 Buyer Negotiation Power Goes Up
3:06 Decreased Inventory
3:43 Less Time on the Market
4:37 Increased Competition
5:50 Increased Leverage for the Seller
Пікірлер: 15
Yess so valuable for the real estate exam! 😊
@McDonaldResidential
Жыл бұрын
glad it was helpful for you!
We live in a very desirable metropolitan area similar to Seattle. We are seeing the opposite of what other parts of the country are experiencing. Interest rates average (6-7%), home prices high (starting at a minimum of 550k for a condo and $700k for a home) but these properties are sitting for weeks/months with no buyers (only potential investors buying). It feels like where I live and am buying buyers and sellers are going head to head. We both have leverage but we also both stand to lose. We offered asking on a property after they rejected two previous buyers and they decided to reject our offer, take it off the market, and lease it. Weeks later it’s still sitting vacant and this is why I will never sell to an investor/flipper/corp if I can help it. People are saying it’s a sellers market but I’m not seeing that so much. Multiple offers come in but the listing gets removed off-market or the deals fall through.
@McDonaldResidential
6 ай бұрын
The market has changed in Seattle since I made this video. The market is much more balanced, not necessarily favoring buyers or sellers.
Thank you for this currently getting my real estate license
@McDonaldResidential
3 жыл бұрын
congrats! Where are you located?
@andyfromxbox
3 жыл бұрын
@@McDonaldResidential north texas 👌
In other words right now is not the best time to buy a home?
@McDonaldResidential
2 жыл бұрын
I wouldn’t say seller’s market = bad time to purchase a home. It could. We haven’t seen a true buyers market in the Seattle area for almost 10 years. 2018 was at least more balanced, though.
THIS VIDEO WAS CONFUSING.
@McDonaldResidential
2 жыл бұрын
What did you find confusing?
@mr.k5687
2 жыл бұрын
@@McDonaldResidential The fact that it's called a "seller market" but you have many buyers.
@jimblessed9610
2 жыл бұрын
@@mr.k5687 Yes. Seller's market means there are more buyers than homes. While buyer's market means there are more homes than buyers. Right Zach?
@McDonaldResidential
2 жыл бұрын
Seller’s market = seller has negotiating leverage (house Buyer’s market = buyers have negotiating leverage (house > buyers)
@NoneFB
Ай бұрын
I think that he is a good presenter. Save the video, review the content until you get it