Coldwell Banker Residential Brokerage
Liza Vernazza, Coldwell Banker Residential BrokeragePhone: (650) 218-8040
Email: [email protected]

What's the Difference Between Buyer and Seller Markets

by Liza Vernazza 10/20/2019

If you are planning to buy or sell a home soon, it is essential you know whether it is a buyer’s or seller’s market. But how do you determine that? 

Buyer’s Market

A buyer’s market is a situation where the supply of houses is higher than its demand, giving buyers an edge over the sellers in price negotiation. It is equally a situation where the available homes for sale exceed the number of buyers looking to buy homes. If you are considering buying a new home, then a buyer’s market is the right place to start as it is the perfect time to make that result-oriented moves. You might be able to buy a high-end property at a discounted price than you would buy in a seller’s market.

On the other hand, trying to sell your home on the buyer’s market will make your property languish in the market for an extended period of time before you can get a buyer as a result of a large pool of available homes in the market. Too much supply will cause you to reduce the listing price or offer some discounts to secure a buyer.

Seller’s Market

A seller’s market is also a situation where the demand for houses is greater than the supply. This means that there are too many buyers looking to purchase homes which are less than the available homes on the market. Invariably, there would be many buyers chasing after a few houses, which causes rivalry or price war among bidders.

A seller’s market is a place to sell your property as you could get a selling price that is bigger than your listing price since more people are looking to buy homes. Better still, you could secure a sales price that is higher - that is the bottom line.

Here, the seller has all the advantages over you if you are buying a property in the seller’s market. If other buyers are interested in the property you are bidding to buy, you might not succeed getting it at a lower price. You could even lose the opportunity of purchasing the property if another bidder offers a premium.

As a result of this singular reason, seller’s market is sometimes referred to as renter’s markets. Thus, prospective buyers will keep on renting until they save enough money that is larger than the down payment, then they can compete with other buyers in the market.

Different Markets, One Professional

Whether it is a seller’s or buyer’s market, a local real estate agent can assist you by bringing a plan for securing the best transaction. If you are buying a property, they will know the right amount of money you have to offer in order to compete favorably with other home buyers. Likewise, if you are selling, they will know exactly what price to ask for.Working with a trusted agent - who will not push you to offer what you are not prepared to, or rush you into making a hasty decision - is the key to getting the best deal in any of these markets.

About the Author
Author

Liza Vernazza

Since 1988 Liza has assisted her clients and friends to realize their dream of homeownership. Whether it be a small condo or a large home, with her strong people skills and negotiating skills, she has assisted them to buy or sell the property of their choice. 1031 Tax Deferred Exchanges, First Time Buyers, Move-up buyers and sellers, Probate and Trust sales are just a few of the types of transactions Liza is experienced in. Additionally, she has successfully represented investors, short sale transactions and bank owned or REO properties. If you are looking for a Realtor that is current with the market, give Liza a call and see the difference!

Education:

Liza recieved the Lifetime Million Dollar Club Award in 1990 only after two years in the Real Estate Business. As a graduate of Anthony's School of Real Estate and a member of the California Association of Realtors, National Association of Realtors and the local SAMCAR Board of Realtors, Liza is always actively pursuing educational opportunities to enhance and further her knowledge of the real estate business.

Professional Philosophy:

"I pledge to earn the loyalty of you, my client, and to be sensitive to your concerns and your needs. I will give you 100% of myself and I will share in your enthusiasm and excitement of finding that special home or marketing your old home. I have a love for my work and continue my education to strive for excellence."

Personal Background:

Liza has lived all her life in the San Carlos and Redwood City area. She is married with two beautiful children and one dog. Currently living in the Emerald Hills area of Redwood City, Liza has been an active volunteer and supporter of Roy Cloud School and and is a current volunteer and a member of the Parent's Association at Notre Dame High School.

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