HOW DO YOU TELL A BUYER’S FROM A SELLER’S MARKET?

By DR. RUTH MIRON-SCHLEIDER
Recipient of NJAR Circle of Excellence Award
1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010

There are various factors and conditions in the real estate market which generally favor either the buyer or the seller. Because the market is constantly changing in this respect, it is important to work with a professional Realtor who keeps abreast of current real estate trends and diligently monitors listings in your area or in the area of your relocation.

Residential real estate professionals keep track of the number of days each property is on the market. In a typical market, it takes about three to six months or longer to sell a home. Whenever there is more than a six-months inventory, there is a surplus, or “glut,” of homes on the market – a buyer’s market.

In such a market, there are too many properties on the market for the number of potential buyers. Homes take longer to sell and prices fall. Sellers must work harder to sell their homes and often add incentives, such as owner financing or redecorating/upgrading credit, in order to attract buyers. In a buyer’s market, buyers may increase their demands and contingencies, sometimes even asking sellers to assume a portion of the closing costs. In such a market, a seller may realize little or no profit from the sale of his home. At times, sellers may actually suffer a significant financial loss.
In a seller’s market, there are fewer properties for sale than there are buyers. Prices tend to rise and homes sell quickly with little or no bargaining. Sometimes homes sell in a matter of hours or days, with the seller often getting “top dollar.” Owners of particularly attractive properties may receive several offers, some even higher than the asking price. In a seller’s market, where the inventory is low and the competition is high, buyers must be prepared to make a quick decision and present an offer that is substantial and well-qualified.

Many factors may affect the real estate market. If you are planning to buy or sell a home, choose a reputable, trustworthy, and experienced Realtor who will help you make a sound decision. Pick a professional who is not only responsive to your needs and circumstances, but also one who is familiar with the market conditions in your area and has an established track record and references of satisfied clients. The right Realtor will work closely with you and will be able to recommend other professionals you will need, such as mortgage brokers, inspection engineers, and attorneys. Your Realtor will coordinate and oversee all aspects of your transaction, from A to Z.

Good luck and happy home buying or selling !!!

Ruth Miron-Schleider, a 33-year resident of Bergen County, is a Certified Residential Specialist, an e-PRO Internet Professional and an Accredited Buyer Representative. She is a member of the Eastern Bergen Board of REATLORS®, National Association of Counselors, the Senior Advantage Real Estate Council, and the Graduate Realtor Institute. For a complimentary consultation, call her at MIRON PROPERTIES, 201.266.8555, or contact Ruth via e-mail: Miron@MironProperties.com.

Information deemed reliable but not guaranteed, subject to errors and omissions.
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