The real estate market can be tricky and confusing, especially when you can’t figure out if it’s a seller’s makret or buyer’s. If you can’t differentiate between the two, don’t stress it!
Let’s explore the difference between the two and how each benefits the seller or the buyer.
What is a Seller’s Market?
A seller’s market is one in which the sellers have greater negotiating power than the potential buyers. In a seller’s market, there are more buyers than homes for sale. In simpler words, there are few houses but more buyers.
What is a Buyer’s Market?
A buyer’s market is when home buyers have greater negotiating power than the sellers. In this market, there’s are more homes available than buyers in the market.
Buyer’s Market Vs. Seller’s Market
Home Sale Prices
The main difference between the seller’s and buyer’s markets is the home sale prices. People usually use prices to determine if it’s a seller’s market or buyer’s. As mentioned above, in a seller’s market, the ball is in the seller’s court. As a result, the prices keep going higher. On the other hand, in a buyer’s market, the price keep going lower, which means the home is sold below the listed price.
Home Selling Time
Another crucial difference between both markets is the selling time. In a seller’s market, the homes are on the market for a shorter time, due to the high demand and competition. As a result, the homes spend less time on the market and sell off quickly. It’s important to note that home prices keep rising as they sell.
However, that’s not the case in a buyer’s market! In a buyer’s market, houses stay in the market for a longer time and take time to sell. Moreover, the longer these houses are on the market, the lower their prices fall.
The housing inventory varies for both markets. There are plenty of houses in the buyer’s market but in the seller’s market, you won’t see many houses available for sale.
Ready to hire a real estate agent in Columbia, TN? Let Coldwell Banker Southern Realty help you!
Coldwell Banker Southern Realty is a well-known residential real estate firm in Columbia, TN, with an experience of over 25 years. They’ve helped hundreds of individuals and families purchase and sell properties in Tennessee.
Get in touch with them to work with exceptional realtors in Columbia! You can reach them in their Columbia office, serving Columbia, Spring Hill, TN, and Thompsons Station, TN, at 615-241-8888, or stop by at 2563 Nashville Highway in Columbia.