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No
matter the condition or desirability of a property, its value
will be affected by current market conditions. Here are the
various conditions you may encounter and how they will affect
you:
- Balanced
Market:
The number of homes on the market is equal to the number of
buyers (supply equals demand). In this market, prices are
stable and homes sell within a reasonable period of time. It
is a calm atmosphere with Buyers having a satisfactory
number of homes from which to choose.
- Seller's
Market:
The number of Buyers exceeds the number of homes on the
market (demand greater than supply). In this market prices
are increasing and homes tend to sell quickly. As a Buyer
you will probably have less negotiating room and may
experience competing offers when trying to purchase your
home.
- Buyer's
Market:
The supply of homes exceeds the number of Buyers (supply
greater than demand). In this scenario prices tend to drop
and the properties stay on the market longer. As a Buyer you
will have more selection and less competition and thus be
better able to negotiate a good deal.
In
Summary:
When you understand current market conditions, you are better
able to position yourself as a Buyer. It helps to know if you
are in a Seller's, Buyer's or balanced market when deciding what
price to offer. In a Seller's market, there is little selection
and you may have to make a full-price (or even higher) offer if
the home is properly priced in order beat the competition. In a
Buyer's market, you have a lot more selection and plenty of room
to negotiate. In a balanced market you will find a good
selection of homes for sale and have a reasonable amount of time
to decide on a home and negotiate the price.
Call me today we can have a coffee and discuss your needs
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