What The Heck Is A Buyer's Market?
Let’s clear the air here and find out exactly what this “buyer’s market?” means on a practical basis.
In our last video, we talked about how we are putting a lot of homes into contract and that’s really important as it relates to understanding this market. First and foremost, calling it a buyer’s market doesn’t really mean anything so I want to break down what it means for sellers and what it means for buyers.
Let’s start with this – the market is alive and well.
I will repeat, the market is alive and well. The biggest misconception that I’m seeing in the current market is when people use words like “slow” and “sluggish.”
The market is not slow and sluggish – the market is as active as I’ve ever seen it. That doesn’t mean its moving at breakneck speed the way it did in 2014/2015 but it does mean that a lot of trades are happening and we are neck-deep in a lot of them.
So, if you’re a buyer the buyer’s market means a few things to me:
Prices have come down and there is softness in the market. There are plenty of opportunities for a buyer to purchase a home at a price that was 10-20% below the peak of the market. That doesn’t mean the market is slow, it just means the market is making a correction. And here’s the kicker – there is nothing wrong with this!
The “buyer’s market” means you have more options to choose from and as I said earlier, you don’t necessarily have to move at a breakneck pace.
That being said, we are seeing numerous buyers get into bidding wars on good quality homes. Yes, you heard that correctly, multiple bid situations despite this “slow” market
This is a perfect transition than for sellers. So how do you get your home into a multiple bid situation?
Price – more than anything what a buyer’s market means is that you have to have pricing sensitivity. You simply can’t be ambitious because buyers aren’t going to take the bait. But if you price your home really well, it’s going to sell. Yes, your home will sell.
The buyers’ market also means that you have to be plugged in more than ever if you’re a seller. Get yourself a broker who’s giving you constant feedback and keeping you apprised of what’s happening with your home.
It also means that if you do miss the mark on price you have the flexibility and understanding to make a price modification within a short period of time.
And maybe the most important component of all for understanding what it means to be a seller in this buyer’s market is to absolutely erase this notion of “it only takes one buyer to pay the price for my home” entirely from your mind. It ain’t happening!