This blog will help you understand the buyer and seller market role, the key differences and how they affect the dynamics of the local real estate market. Whether you are considering buying or selling a property, it is important to be aware of the current housing market situation while purchasing or selling property since the trend of buying and selling is constantly fluctuating. Hence it affects the progress and performance of real estate markets significantly. If you want to buy property at the best possible price and at a competitive market price then you should be well aware of the market segmentation.

The real estate sector is mainly divided into buyer market and seller market. This huge market divergence is one of the main reasons why the supply and demand graph constantly changes, causing real estate prices to fluctuate.

THE DIFFERENCE BETWEEN BUYER AND SELLER MARKET

It is important to know the difference between the buyer and seller market role when it comes to real estate and property.

BUYER’S MARKET:

A buyer’s market is an economic situation in which the buyer of an asset has more bargaining power than the seller of the property. That’s when the supply of the asset exceeds the demand. Some of the most common causes of buyer competition are the economic downturn, spike in crime rates, and over-construction in a particular area.

CHARACTERISTICS OF BUYER’S MARKET

  • The slower rate of real estate sale

  • Property being sold at or below the stated price

  • The continuous decrease in real estate rates

  • Excess housing supply leads to little or no demand for properties

BUYER MARKET TIPS:

People can wait for market conditions to turn in their favor. If not, though, here are some tips for those trying to sell in the buyer’s marketplace.

  • Set realistic expectations

Making up your mind about the buyer market from the very start will help you set a realistic approach. Set competitive prices for your property. If you overvalue, even your easy-to-sell property could be overlooked.

  • Be Prepared for Negotiating a Price

It should be kept in mind that in the buyer market real estate can be sold for at or below the advertised price, therefore you must be prepared for negotiations as a seller. By being flexible with property prices, you can get good attention from potential buyers.

  • Showcase your property the right way

As a buyer’s market seller, it’s important that you make the right first impression on homebuyers by presenting your home in the best possible way. Work on the attractive curb of your property and complete repairs and maintenance as needed.

SELLER’S MARKET:

Well, as the term itself suggests, it’s the exact opposite of a buyer’s market. The seller’s market has less supply of real estate than the demand, which indicates more buyers than homes. This automatically increases the bargaining power of the seller.

Due to the nationwide housing shortage, Pakistan’s real estate has been a seller’s market for a while, which is one of the main reasons why property prices continue to rise.

CHARACTERISTICS OF SELLER’S MARKET

  • Real estate sells faster than usual.

  • A property may be sold for at or above the stated price.

  • The continuous increase in property rates.

  • The supply of housing is short, leading to ever-increasing demand.

SELLER MARKET TIPS:

Real estate investing is becoming quite difficult for buyers in the seller market due to the higher rates of the property, as well as the limited availability of options, within the budget. In such cases, you need to come up with a specific strategy if you want to buy a property at the best possible price.

The following tips may help you in this regard:

  • Be Friendly and Welcoming

Be very nice to the people you are dealing with. Act politely and in a friendly manner. Of course, money would do most of the talking in a buyer and seller relationship, but maintaining nice behavior as a buyer could go a long way. It is all about making the right first impression on the seller, which could also be proven useful when it comes to price negotiations.

  • Patiently monitor the market to find the right property

It’s best not to rush decisions as a buyer in a seller-friendly market where property prices are skyrocketing. It will take some time to find the right property for your needs and budget. However, once you’ve found it, you’d better close the deal quickly.

  • Act Fast

In the seller’s marketplace, once you’ve found something that meets all your needs, you may act fast. If you are interested in a property, make an offer immediately. If you don’t act quickly, someone else could deprive you of this investment opportunity, especially in a rising property market and housing shortage.