One of the reasons it is so important to use a qualified real estate agent is because they have intimate knowledge of the local market. There are national trends when it comes to real estate, however, markets vary from state to state and even town to town. This means that you might experience a seller’s market in one area and a buyer’s market in another. Each present benefits and challenges. Enjoy these insights on these two types of markets from Brookfield IL real estate agent Agnes Halmon.
This is a phrase that refers to a local real estate market that favors buyers for several reasons. First, in a “Buyer’s Market,” there are many homes available for sale. Second, the amount of buyers seeking those homes is generally low. Given the dynamics of supply and demand, if the supply is great and the demand is low, prices are also low.
Benefits of a Buyer’s Market
Buyers have several benefits when the market favors them. The most obvious are that buyers can get a home for a lower sales price. Sellers are more willing to drop their price because they don’t want their home on the market too long. Options regarding the features of a home become more plentiful. They may have several homes to choose from with an array of features. During the negotiating process, buyers can request more concessions as well. For example, a buyer might ask for the seller to cover closing costs. Or if repairs are needed, buyers can push for these as well.
A “Seller’s Market” occurs when there are fewer homes available for potential buyers. The number of buyers is also generally higher. Thus, when a seller puts their home on the market they will have the potential of several buyers putting offers in on their property. Bidding wars can ensue making the price of the home rise.
Benefits of a Seller’s Market
The benefits that sellers have when the market favors them are many. First, they can get a higher sales price. They may choose to list it higher in the beginning or wait until they have multiple offers. When the latter occurs, buyers go back and forth with offers and the seller can choose which one to accept, often taking the one with the higher offer. Sellers can also take the reigns when it comes to negotiations. They can refuse requests for changes to the home or taking on the responsibility of various costs.
For help buying or selling in or around Brookfield IL contact professional Realtor Agnes Halmon today!