A buyers market takes place when there are more sellers trying to sell their homes then there are buyers purchasing homes. It is also known as a cold housing market. This is a great opportunity for homebuyers to get excellent deals on a new home!
More Homes, Lower Prices
There are many upsides to a buyers market and some downsides too. Buyers will have many more houses that they can choose from, increasing the possibilities of finding their dream home. Prices for homes will be lower since buyers know if they overprice their homes, buyers will just move on to the next one. There will be less competition to have to contend with and it avoids potentially catastrophic bidding wars. The days on the market last longer for homes during a buyers market.
Homebuyers have so much more to choose from so they can take their time and look at more homes to find the right one. Whereas in a hot housing market homes are scooped up within days of listing. You will undoubtedly notice more for sale signs, billboards, and bus advertisements during this cooled-off time as well. Realtors and sellers will be trying to advertise their properties as much as they can.
Sellers Negotiate Price
Another upside is the ability to negotiate with the sellers. Sellers want to get their home sold, and without many other potential buyers around they are much more willing to negotiate. Sellers typically are trying to buy a home for themselves as well so they tend to be extra motivated. This can correlate to getting a home under listing price, providing more concessions, or repairing more of the smaller issues found during an inspection.
Sellers might even consider paying some, if not all of your closing costs. Overall, it is a much more relaxed and pleasurable experience for buyers in a buyers housing market. Interest rates tend to stay low since banks need the business and want to attract prospective clients to fund their mortgages through their bank.
New Home Construction Perks
Buying a new construction home from a builder also has its perks during a buyers market. Since there are less buyers coming into the showrooms and looking at the inventory, builders will shell out way more incentives and upgrades for less cost.
This can include the builder installing gutters, window coverings, storm doors, and crown molding. You can also negotiate upgraded fixtures, lighting, sounds systems, and security systems. Be careful to not accept an upgrade that doesn’t really matter to you. Say the builder is willing to upgrade your countertops to granite, but that isn’t something that excites you, let them know and hold out for another upgrade that will benefit you.
Some builders who have decided to drop a certain model of home from their inventory will even be willing to continue to build that model during a buyers market. Builders also have spec homes that they build to show as model homes since they are based off of the builder’s most popular floor plans. These homes are move in ready. The only downside is that all of the details you typically pick out yourself during a home build have been picked out already by the builder. The upside is that the builder has usually picked the best possible options since it’s the model home they are selling their clients on.
These homes are priced exceptionally well during buyers housing markets. Take advantage of this when you can because it typically does not last long.
Cons Of A Buyers Housing Market
The downside to a buyers housing market is mostly on the seller’s side. Sellers may be stuck with a home they need to sell before they can purchase a new one. Sure, finding a new home will be much easier during a cold market but selling your home first can be quite a challenge.
It is a very wise decision to hire a local relator to list your home on the market. Experienced realtors have an arsenal of potential buyers they can bring your way. They also know how to market your home to make it more appealing to buyers. Any advantage you have over the other sellers in your area is pivotal when trying to sell your home in a cold housing market.
You may even find in your own neighborhood between five and ten other homes that are on the market listed for sale. In this case you must make your home stand out. A great way to do this is by investing a little bit of money. If you do so the reward will be worth it and your home will move faster then for your neighbors.
Tips To Selling A Home In A Buyers Market
Apply a fresh coat of paint outside and inside your home, this takes years off the look of your home. Hiring a landscaper to come over and fix up your front lawn is a great way attract attention to your home. Or you can head on down to the local home improvement store and pick up some flowers and mulch. It will amaze you what a little bit of mulch can do for the aesthetics of your lawn.
Spring for a maid service to come and give your home a good cleaning. Potential buyers want to view a clean home. Clear out the clutter from your house as well. Homebuyers cannot envision living in a cluttered space. Sending some of your belongings to a storage unit is also a great way to help de-clutter while trying to sell your home.
Make sure all appliances are working well. The difference between your house and the house down the street could be something as simple as their fridge is properly making ice and yours is not. Ensure all light bulbs are working and if not get them replaced immediately.
In a buyers market the little things matter. Homebuyers can be quite picky and demand a lot from you as a seller. Having a realtor can also benefit you because they will give you even more helpful tips on what to do to make your home stand out in a cold market.
