Is It a Buyer’s Market or a Seller’s Market? What’s the Difference?

Real Estate - buyers vs sellers market image

Buyer’s Market

Whether it’s at work in the breakroom, at a dinner party, or you hear mention of it on the news, you’ve likely heard someone recently talk about whether the real estate market is a “buyer’s market” or a “seller’s market.” Let’s define them both, so you can be sure to be a useful contributor to that conversation.

A buyer’s market occurs when there are more properties for sale than the number of buyers who are actively shopping for homes. As you can imagine, this would give the buyers the upper hand. It is simply supply and demand.

If it is truly a buyer’s market, homes that have been listed for sale can be on the market for a few months before the right buyer comes along.

In this type of situation, sellers may have to do some financial gymnastics to sweeten the deal. That may mean concessions, repairs, or covering closing costs.

A buyer’s market means that you may have to work a little to sell, but if you are a buyer, you may be able to get a sweet deal.

Seller’s Market

Conversely, a seller’s market occurs when there are more buyers than the number of properties available. Again, it is simple supply and demand. If the economy is good, dollars are flowing, and buyers are feeling confident, this can lead to competition among buyers that brings about bidding wars.

You may find multiple buyers placing multiple offers on multiple properties with the hope they will “win” one. This can even lead to buyers placing offers on properties – sight unseen.

This can also result in buyers feeling pressure to offer high or even make a cash offer in order to get a seller’s attention.

Like we saw in the run-up to the mortgage crisis in 2008, the competitive “winners” caused prices to inflate beyond the rate of property value growth. As a result, buyers were buying property for well above rebuild cost all while artificially inflated values led to a massive market correction. In turn, this led to an awesome buyer’s market that many of you might have taken advantage of.

Like this post?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest
Email to Friend
Print it

read other posts...

Let’s Meet

Receive a Free and Customized Real Estate Income Estimate

Collaborate with a dedicated On-boarding Specialist who will work with you and for you, and provide a free, customized Real Estate Income Estimate (REIE). Your Estimate will show you how you can begin generating real income with simple and conservative real estate investments, one property at a time, starting right away with the resources you already have. This brief conversation will answer your questions, unlock the investment purchasing process, deliver practical ideas of how real estate “done for you” could have an immediate impact on your financial life, while providing clear guidance, and customized recommendations to assist you with your financial future. This conversation only takes a few minutes but can change the trajectory of your financial future. Enter your info to get started.
Play Video
By clicking the Schedule A Call button, I agree that I am providing authorization to Done For You Real Estate USA, The Companies, LLC, Strategic Lending, Inside Insurance, or third parties that perform functions on our behalf or for our clients, and for which The Companies, LLC may receive compensation, to contact me for telemarketing and informational purposes at the telephone number provided, even if I have previously registered on a corporate, state or national Do Not Call registry. I have authority to provide this consent because I am the subscriber of the telephone number or I am a customary user who has authority to consent to these communications. I also agree that Done For You Real Estate USA, may contact me using text messages, even if the number is connected to a service for which I am charged. I understand that I am not required to provide consent as a condition of purchase, or loan consideration or approval. Msg & data rates may apply.
Replace Your Income Podcast - Steve & Kevin Podcast Banner

Check out the new top rated

Replace Your Income


DFY Real Estate - Full Size logo (Top White & Orange)

We use cookies to improve user experience and analyze website traffic. For these reasons, we may share your site usage data with our analytics partners, but we do NOT sell your data to any third parties. Feel free to read our Terms and Conditions and Privacy Policy to learn more.