Seller’s market | Buyer’s market | |
---|---|---|
Definition | Demand exceeds supply—real estate inventory is low and there are many interested buyers. | Supply exceeds demand—real estate inventory is high and there are fewer interested buyers. |
Effects | Sellers have the pricing power. They may receive multiple offers, see bidding wars, and get offers above their asking price. | Buyers have more power as far as setting terms and prices. There may be more room for negotiation and sellers may have to be more flexible. |
What to consider | Listing at market value may result in a quick, full-price offer. Listing above market value may result in your home selling for a premium—but you risk sitting on the market for longer. Listing below market value may result in multiple offers, leading to a bidding war—but those offers may be on the lower end of your home’s assessed value. |
Have your home inspected and make repairs ahead of listing. Offer buyer incentives like paying all closing costs, paying for repairs, or allowing rent-to-own. Price competitively by following comps (comparable properties that recently sold) and working with a local real estate agent. |