There are more people looking to sell homes than people looking to buy houses. There are more people looking to buy homes than people looking to sell houses. Many sellers need to settle a certain price for their home in order to pay the mortgage, make a down payment on their next home, and cover closing costs and moving expenses. If you see a high percentage of homes with recent price cuts, you're likely to be trending toward a buyer's market.
This means that sellers can set higher prices on their homes, stop offering concessions and expect to close a deal quickly. If you're not sure how to tell if this is currently a buyer's or seller's market, there are numerous pointers you can look for to learn about current housing conditions. When analyzing home prices, be sure to evaluate trends rather than individual occurrences to get a more accurate idea of the current market. On the contrary, seller's markets allow sellers to ask for more money and encourage bidding wars, giving them power.
Lower mortgage interest rates allow more buyers to enter the market, resulting in an influx of demand that indicates a seller's market. This increased competition often makes people willing to spend more than they normally would on a home, allowing sellers to increase their costs at or above the original sale price with little or no rejection from buyers. If finding a place to live is more important than the house itself, then maybe that's okay, but otherwise it'll be better to wait for market conditions to change. With a better idea of what's going on in the real estate market, you'll have the advantage, allowing you to get a better deal on the transaction.
While there are no mandatory home inspection repairs, putting a home back on the market due to inspection issues is never a good thing. The housing market crash that occurred as a result of rising foreclosures and other factors caused demand to fall and supply to increase, creating a buyer's market. If you're not sure if this is a buyer's or seller's marketplace or even what these terms mean, don't worry, you've come to the right place. If you offer to help pay part of the buyer's closing costs in addition to your own, you can attract buyers who could use the extra money.