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The dynamics of the real estate markets are constantly shifting based on the number of houses currently available for sale, interest rates, and a myriad of other factors. If you are buying a home, this can impact how you negotiate the terms of the sale. When a market is said to be a "buyer's market," that means that the buyer has more leverage--or power, if you will--than the seller. How? In a buyer's market, real estate companies are generally well-stocked with inventory, which means there are plenty of homes for buyers to choose from and the selling prices are generally lower. The more houses there are for buyers to choose from, the more flexible sellers have to be to sell their homes. For example, in a buyer's market, sellers may offer to split points with the buyer or return a certain amount of money to the buyer at closing to put toward home repairs. Buyers in a buyer's market hold more leverage than sellers, and should use that leverage to their advantage to negotiate more favorable sales terms.
|Sheri Ann Richerson|