Real estate can be a difficult playing field to predict, especially when it comes to a buyer’s versus a seller’s market. Lower prices mean a more relaxed time while higher prices skew the odds against you as a buyer. The question is, will 2021 be a better time for buyers or sellers? We’re defining a buyer’s market and what exactly that means for you and your next potential home.
What a Buyer’s Market Means
A buyer’s market is a time in real estate in which prices are lower, giving the buyer an advantage. This means that property competition is much more relaxed, allowing potential buyers more time to consider all options. Purchasing a home in a buyer’s market is a great investment. You could buy your home at the lowest price, wait a few years, then sell it at a higher price when the market changes. 2020 has definitely been the year of the seller’s market. Prices are high and many Americans are having a difficult time finding a home. The good news is that the tide may change in the next year or two once the pandemic has calmed down. Be sure to keep an eye out for dips in prices later down the line! A buyer’s market may be coming!
How to Handle a Buyer’s Market
Knowing what’s available on the market will give you an outstanding advantage during a buyer’s market. Because costs and competition will be so much lower, you’ll have more flexibility to negotiate. Pay attention to how long a house has been on the market. The longer it’s been available, the more leverage you’ll have in negotiating. Make sure to also look into how the home you’re interested in compares to others on the market. If you notice that the home you’re interested in sells for less in other areas, bring this up! All’s fair in negotiating in a buyer’s market!
Staying aware of the shifting tides of the real estate market is something you should be doing year-round. The market can change at any time, and your needs should determine when and where you need to buy. Life doesn’t always match up with the market time, so whether it’s a year for buyers or sellers, you should be honest with what’s feasible. Don’t be afraid to negotiate, and research comparative prices to ensure you’re getting the best deal. Happy buying!