January 28, 2014 11:40 am
Many prospecting homebuyers still think that rules in use during the Buyers Market are still applicable. The opposite is the case now that we are in a Sellers Market.
In a Buyers Market there are plenty of homes for sale but buyers come far and between. Hence, when a home buyer comes knocking and is making an offer, he is welcomed by the seller who may be willing to accept a lower price and throw in a few extras like a contribution towards the buyer’s closing costs. The days on the market are long and buyers can shop around forever making sure they aren’t missing a deal.
In a Sellers Market everything is the opposite. There are plenty of buyers vying for only a few available homes. This causes a frenzy of multiple offers, bidding wars, and rising prices. Seller concessions are no longer negotiated. The days on the market are VERY short. In other words, the sellers are holding the hammer. If buyers want to have a chance buying their dream they should make a clean offer, preferably at full price and without contingencies. Always remember, the next dream home may not come on the market soon.