By David Parks · eXp Realty · The Apollo Group · 2 min read
In a seller’s market, there are more buyers than homes, so prices rise and homes sell quickly. In a buyer’s market, there are more homes than buyers, giving buyers more choice and negotiating power.
Real estate professionals often look at months of inventory, which is how long it would take to sell all current listings at the current pace. Roughly four to six months is often seen as balanced. Less points toward sellers, and more toward buyers.
In a seller’s market, expect competition and a need to move fast. In a buyer’s market, you may have time to inspect, negotiate repairs, and ask for credits.
In a seller’s market, pricing well can bring multiple offers. In a buyer’s market, preparation, presentation, and realistic pricing matter more.
| Buyer’s market | Seller’s market | |
|---|---|---|
| Inventory | More homes than buyers | Fewer homes than buyers |
| Prices | Flat or softening | Rising |
| Time to sell | Longer | Shorter |
| If you are buying | More time, room to negotiate | Move fast and write a strong offer |
| If you are selling | Price realistically and present well | Price well to draw multiple offers |
Markets differ by city, neighborhood, and price range. A townhome in one area can behave differently from a large home in another. Ask your agent for current inventory and days on market in your specific segment.
This article is general information, not legal, tax, financial or inspection advice. Every home and situation is different, so confirm details with a licensed inspector, lender, attorney or tax professional.
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