Real Estate market trends affect everyone, as demonstrated in the real estate bubble bust of the late 2007.
There are basically two real estate markets; a Buyer’s Market and a Seller’s Market.
During a Real Estate Buyer’s Market there is a more real estate for sale than buyers interested in buying properties. This market causes property values to decrease and properties stay on the market longer. The competition to sell real estate becomes more fierce, and Sellers must prepare their house better, and provide more incentives for buyers to rise above their competition in the market. During a Buyer’s Market it is more important to Stage the property, and price the property accordingly, in comparison to other comparable properties for sale in the general area.
During a Buyer’s market it more important for Seller’s to use a Realtor or Real Estate Agent, than during a Seller’s market. I understand that it’s difficult to pay the real estate commissions set by Real Estate brokerages, but it will cost the seller more when the property is not property represented and stays longer on the market, further depreciating the property value. Not to mention that Buyers will want to set terms and contingencies that might not benefit the seller!
During a Real Estate Seller’s Market buyers are snatching up properties, and there is a lack of properties in the market. When there are more buyers than sellers, this causes a buyer’s market, drive property values up, and properties sell faster. Many buyers buy properties for investment purposes; to hold and profit from their increase in value.
In a Buyer’s Real Estate market, it is still important to property stage the house your house, as buyers are always looking to purchase real estate for the best value. When you stage your property correctly and use a Real Estate agent that properly markets your house, it can cause numerous buyers to gain interest in the house, thus causing a bidding war and providing the seller with a better purchase offer. Your Realtor can also ensure that you, as the seller, accept the purchase offer that best portray terms and contingencies beneficial to you.
One of the best ways to establish the Current Real Estate Market trends is to get a CMA or Comparable Market Analysis from one of our Real Estate Agents.
