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If you have any questions or need more detailed information, please feel free to contact me via phone at 301.613.7253 or fill out the form to let us know how we can help with your real estate needs.

Office Location 795 Rockville Pike,
Rockville, MD 20852
Phone: (301) 613-7253
Fax: (301) 424-9290

Buyer’s Market vs. Sellers Market

Simplistically put, buyers have the upper hand in a buyer’s market and sellers have the upper hand in a seller’s market.  Most people understand these concepts.  However, practically speaking, what this means to you depends on the perspective you are coming from.

Buyer’s Market

Let’s start with a buyer’s market.  A buyer’s market is one in which there are few buyer’s and many homes listed for sale.  This means buyer’s can take their time looking for a home and have many choices without a high risk of “losing out” on a desired property.  Buyer’s can also offer less for a home and ask for special incentives because sellers can be anxious to sell a home.

Although good for buyers, a buyer’s market usually indicates that for one reason or another there aren’t a lot of people buying and the economy is probably slow or slowing in a particular region.  Buyer’s markets can be localized or broad depending on the state of local and national trends in the economy.  There are many markets around the country that almost always experience Buyer’s markets because there is a lack of demand for housing most of the time.  Rural areas often experience this phenomenon.   

Seller’s Market

In a seller’s market the opposite occurs.  There are more buyers than there are homes on the market.  This means that buyers often have to make offers quickly and usually for a lot more than in a buyer’s market because the demand outweighs the supply.  Buyers should know what they want and go after it without hesitation.  Their financing should also be strong because they may be competing with others with some of the better homes that come on the market.

Selling, then Re-buying in a Buyer’s market

If you find yourself selling your home then re-purchasing in a buyer’s market there can be much stress involved.  The prevailing thought of sellers is that, “if I sell my home for less than what I think it is worth, I will not be able to purchase a comparable home.”  But remember, as a buyer you will have the upper hand and most homes are not selling at list price, but below.  You will be able to make a lower offer on a home and will likely be able to purchase it without much competition.  The one key tip is that you should make plans to be flexible.  Your Realtor can give you options if your home sells before you find your new home.  Solutions such as rent-backs or temporary housing options can sustain you until you can find your new home.  You should take advantage of the buyer’s market and take your time in finding the perfect new home because the benefits will be worth the investment of time and energy that you devote to the search process.

More articles:

  • The decision to sell
  • The difference between a buyer's and a seller's market
  • Do I need a Realtor to sell my home?
  • Staging - what is it and why is it necessary?
  • Pricing it right is critical
  • What determines a home's value?
  • Marketing your home
  • What to expect after listing your home for sale
  • Home Improvements
  • What are disclosures?
  • Short sales, foreclosures, and bank-owned properties (or REO)
  • Lease options
  • Offers
  • Multiple bids
  • What is a seller subsidy?
  • Negotiating offers
  • Now that you have a contract on you home
  • What should I expect at settlement?

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