Timing the Market

Whether you are looking to buy or sell a home, keeping track of present real estate trends is essential. After all, regardless of what side of the sale you’re on, you’ll need to be certain that you receive the best deal possible. To make this happen, you will need to pay particular attention to timing the real estate market.

Just as the phrase implies, timing the market involves choosing the time that’s best situated for buying or selling a property. The best time for those that are interested in buying a property will be during what is called a “buyer’s market.” During a buyer’s market, the conditions are favorable for those that are looking to buy a house. The number of houses for sale has to outnumber the number of people who are looking to buy a house in order to be considered a buyer’s market. Therefore, those who are selling their homes are forced to decrease the list price to attract buyers. During a homebuyer’s market, in addition, the buyer has more clout when it comes to negotiations. Simply put, since the seller is more desperate to sell the house, the homebuyer will have a greater ability to request certain repairs or to demand certain appliances or pieces of furniture to be included.

On the other end of the spectrum, the term seller’s market refers to when market conditions are more favorable for persons who are trying to sell their properties. In a seller’s market, the number of people that are interested in buying a house is far greater than the number of people who are selling. In this scenario, the seller is able to demand a higher price for the house. In addition, the buyer will be less likely to get the owner to agree to concessions.

Obviously, real estate market conditions are strongly related to the state of the economy in general. So if the market is saturated with foreclosures & if a large section of the nation is having difficulty with finances, those who are selling their houses will have more trouble selling them. As such, persons who are determined to sell must lower their asking price. Meanwhile, sellers can afford to hold onto their houses and to command a higher price when the economy is in good condition. Therefore, a shrewd buyer or seller will be able to obtain the best deal by keeping an eye on the economy as well as market conditions.

It is paramount to keep in mind that all real estate is local when ascertaining real estate market conditions. Certain markets are relatively balanced real estate markets, like Austin, TX, favoring neither buyers nor sellers. Conversely, some real estate markets heavily favor homebuyers, like Las Vegas or Nevada. Even within a local real estate market, conditions might vary – vacation homes in Hawaii lean towards homebuyers, while residential properties are more balanced. In Austin’s balanced real estate market, by the same token, there are sub-markets that deviate. For instance, Austin’s condo market strongly favors homebuyers.

Simply stated, it is imperative to know the difference between a buyer’s & sellers’ market when deciding whether to buy or sell a house. It’s just as vital to know the local and sub-market real estate conditions when analyzing your own position.

Learn more about Timing the Real Estate Market, or learn about market statistics and look at active listings in Rivercrest Homes for sale in Austin, Texas.

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