The average time it takes to sell a home indicates the market climate. It is very important a seller understands which market they are in and the average time it is takes to sell a property. Ask your sales consultant about the current market in your location.
There are three types of market climates:
A seller’s market
There are lots of buyers and very few homes for sale. High demand for property is in the seller’s favour as properties spend less time on the market and sale prices rise due to scarcity.
To all sellers this is the “golden time” when they can be firm on their price and the conditions of the sale. If Buyer number 1 is not prepared to pay the price, Buyer number 2 and 3 will.
A buyer’s market
Often there are literally hundreds of homes for sale and very few buyers. High demand for buyers is in the buyer’s favour as properties stay on the market much longer and sale prices reduce to compete for buyers. Here the buyers have a field day as they know they can bargain hard and set the conditions of the sale. Should Seller number 1 not accept his offer, then seller number 2 or 3 down the road will be happy to accept.
A balanced market
Numbers of buyers and properties for sale are about equal. Neither buyer nor seller has an advantage as properties are not languishing on the market or being snaffled up.
What does all this mean if you are in the market for a residence for yourself?
If you are consecutively selling your property to buy another for yourself, it doesn’t matter in which market you find yourself. You either buy and sell ‘high’ in the ‘sellers market’ or low in the ‘buyers market’. For you buying or selling matters only to move around to suit your individual living needs. The property market should not concern you and all the jargon about Buyers - or Sellers market should be forgotten. Just find the property you love.
This article was originally published on the Harcourts Australia blog. To read the original, click here.