What is the difference between a buyer and a seller's market?

And how do you know what market you're in at the time?

It's no secret that real estate times are tough right now. But it's not all bad for everyone. Interest rates are still low and buyers can still buy despite what the media may want to imply.

Lenders still have money to lend and even with average credit you can obtain a loan for a home even if it's your first time.

When there is an excess of homes on the market as there is now, it's called a buyer's market. This means the buyers really have more leveraging power than the seller as the buyer can always find another home. The is a lot of home inventory right now so buyers have a extremely large inventory to shop from. Plus with homes not selling as quickly as seller's like, the chance that the price of a home will be lower than market value is very likely.

When homes are selling at a phenomenal rate as they were just a couple years ago, they call this a seller's market. The seller's really had all the power as there was always another buyer right around the corner willing to offer more.

A year or two ago, home prices were at an all time high and buyers were commonly using escalation clauses to bump up the price of the home past the highest bidder. Those clauses have not been seen now probably in the last year as there are just too many homes for buyers to choose from.

Home that went from being on the market days and sometimes hours, are now sitting for months if not over a year. As a seller, there are things you can do to make your home stand out above all the rest and as a buyer, you can be sure to find a great deal on your next home, if not, there is always a home down the street ready to lower their price to suit your needs.

Contact our agents today to learn more about the great deals available and to find out how to set your home apart from the other on your block!

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RI Real Estate Information - Serving home buyers interested in purchasing real estate in Rhode Island and Southern New England. Expertise in first time buyers, investors, foreign nationals, and second homes.