What Is a Buyer’s Market?

May 23, 2024

Buyer’s market is a term used to describe market conditions when housing supply exceeds demand. This scenario puts sellers at a disadvantage with increased options available to homebuyers and added competition from other sellers in their market.

Man opening door while talking to other people

A greater number of houses on the market often leads to lower offers from homebuyers because they will likely have similar options in the area.

Here are a few things to consider when selling your home in a buyer’s market:

  1. Your Home May Be on the Market Longer

    Given the decreased demand for homes, you can expect yours to stay on the market for longer. However, you may also use this as an opportunity to make your home more appealing to potential buyers. Use the added time to declutter or make any necessary repairs or updates that will make your home stand out among the rest.

  2. Home Prices May Decrease

    In a less active market, home prices may decrease due to sellers wanting to appeal to buyers who have more options that usual. If you are considering lowering your selling price, then it’s worth researching similar listings in your area and ensuring that your new price is the same or slightly lower than the homes you surveyed.

  3. Homes Are Less Likely to Receive Multiple Offers

    With increased negotiating power, buyers may consider other options before submitting multiple offers on a single home. With homebuyers less likely to get into a bidding war for your home, you may want to focus on how you market your home. You may consider hiring a team to help you organize and stage your home for professional photos and schedule open houses or home tours.

  4. Sellers May Consider Making Concessions

    Although the most straightforward concession is lowering the price of your home, sellers can also make the deal more appealing by covering some of the closing costs themselves. Given that first-time homebuyers often underestimate all costs associated with buying a home, some sellers may incentivize buyers to close the deal by agreeing to pay property taxes, title insurance or other home closing fees on behalf of the buyer. If offsetting the steep costs of buying a home is a priority for a potential buyer, this could be an effective strategy.

Whether you are selling your home in a buyer’s market or a seller’s market, you should work closely with your real estate agent to find the best way to market and sell your home.

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