Did you know that a buyer’s market or a seller’s market can affect the market value of some types of real estate more than others? Before explaining, we should discuss the meaning of the terms.
A Buyer’s Market is a marketplace where supply and demand are out of balance, shifting toward greater supply of real estate listings than the number of ready buyers. In this market, sellers have lots of competition for buyers and therefore, professional marketing of the property is more important.
A Seller’s Market is a marketplace where supply and demand are also out of balance but in the opposite direction of the former example. Here, ready buyers exceed available listings. Bidding wars may result when the seller’s prices are set too low; buyers are often faced with making offers more attractive by increasing earnest deposits and negotiating fewer concessions.
Most of the Greater Portland real estate market has been experiencing a seller’s market for the past year. Properties having problems like those with an undesirable floor plan, too few bathrooms, or a location on a busy road will tend to be negatively affected less by these factors. This is because with fewer properties to choose from, buyers tend to be more willing to overlook such issues. Knowing this, right now may be a good time to move out of that less than perfect house. Just remember though, that as a buyer you might face a bidding war after finding the “perfect” home.
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