Nobody can actually time the real estate market. Not even the professionals who work daily in the real estate market. However, there are a few factors that influence the market prices and you need to analyze them to take a prudent decision based on those facts and figures. Buying real estate could be overwhelming if you do not have the right resources and expert advice on when to buy. It is essential that you consult with the experts before you plunge in – especially in cities like New York where the market always seems to be volatile. New York property appraisers could ensure that you get a fair estimate of the price of your property in the current market circumstances.
To begin with, let us understand the types of real estate markets. In a broad sense, they fall into three categories:
- Buyer’s Market – A buyer’s market exists when there is more inventory (houses for sale) than buyers. The concept is that since there are a lot of homes to choose from, not every home sells and the prices are dominated by the buyer’s capacity to pay. There are few buyers and hence only a few properties will sell.
- Seller’s Market – In a seller’s market, there are more buyers than there are properties to sell. Because there are fewer properties to choose from, almost every home sells and prices vary accordingly.
- Neutral Markets – Neutral markets are usually balanced. The interest rates are affordable and the number of buyers and sellers in the marketplace are equal. Scales do not tip in either direction and the market does not favor either buyers or sellers.
Buying in a Buyer’s Market
There are a few advantages of buying in a buyer’s market. Firstly, sellers are willing to wheel and deal because, they understand that if they refuse the buyer’s offer, there might not be another offer readily available. Prices are typically low and they are willing to sell at the price the buyer negotiates. Buyers can also demand concessions and there is a greater chance of them being met. In New Jersey appraisers can help you evaluate the property and you can negotiate any repair works too. The buyers are usually in control and sellers go by the philosophy that an offer in hand is better than no offer at all.
Buying in a Seller’s market
If you have no urgency in buying a home or a property, a seller’s market is not an ideal time to buy. This is because sellers generally have multiple offers and they command the prices. They are unwilling to negotiate and can demand higher prices.
Selling in a Buyer’s market
If the seller does not have a pressing need to sell, it’s advised that they do not sell in a buyer’s market. Lower demand for the property puts a pressure on the sales prices and sellers end up getting lower than the worth of their property. Sellers are not in control of the transaction and could end up in a bad deal.
Selling in a Seller’s market
This is the best time for a seller to put a price tag on their property. There is a greater probability that they get a higher price for the property and the sellers are totally in control of the transaction.
Take advice from the experts
Even before you begin to judge the market, make sure that you have a real estate appraiser to evaluate your property and give you a fair estimate of the worth of your property. Only after that, you can decide whether the market is right and whether you can get the desired price for your property.
So, it’s essential that you understand all the factors that affect the prices when you buy or sell a property. It gives you a fair idea whether the time is right to either buy or sell a property.