Decoding the Real Estate Market for Home Sellers
Just like buyers, home sellers need to understand the type of market they’re selling in.
Whether it's a buyer’s market, seller’s market, or balanced market, the dynamics of supply and demand play a huge role in determining how fast your home sells and for how much. Knowing what to expect in each market helps you make informed decisions about pricing, negotiations, and closing.
Let’s dive into what each market means for a seller by following a new couple, Megan and Tom, who are selling their home in three different markets.
The Three Types of Real Estate Markets
Buyer’s Market
Seller’s Market
Balanced Market
We’ll show you how Megan and Tom navigate selling their home in each type of market.
Scenario 1: Selling in a Buyer’s Market
A buyer’s market occurs when there are more homes for sale than there are buyers. This gives buyers the advantage, as sellers face more competition and often need to make concessions to close the deal.
Megan and Tom in a Buyer’s Market
Megan and Tom are selling their home during a buyer’s market. They realize there are a lot of homes available, so they work closely with their agent to price their home competitively. They know that pricing too high could leave their home sitting on the market for longer than they’d like.
Despite pricing their home fairly, they don’t receive many offers in the first few weeks. When an offer finally comes in, it’s lower than they expected, but they decide to accept it after negotiating with the buyer to cover some of the closing costs. They also agree to make some repairs after the inspection, understanding that buyers in this market have more leverage and can request concessions.
In a buyer’s market, sellers like Megan and Tom need to be prepared for longer listing times, lower offers, and more negotiation on repairs and closing costs.
Scenario 2: Selling in a Seller’s Market
A seller’s market is when there are more buyers than there are homes for sale. This gives sellers the upper hand, as buyers often compete for a limited number of properties, leading to higher prices and faster sales.
Megan and Tom in a Seller’s Market
In a seller’s market, Megan and Tom are in a much stronger position. They price their home slightly above comparable listings, knowing that buyers are eager to compete for available homes. Within days of listing, they receive multiple offers, several of which are above the asking price.
Since they’re in control, Megan and Tom don’t feel pressured to accept the first offer. Instead, they review the terms carefully and choose the one that fits their needs best—not just the highest offer, but the one with favorable terms, such as a quick closing and fewer contingencies.
When the inspection report comes back with minor repairs, Megan and Tom have the leverage to decline making repairs, knowing that the buyer will likely still move forward to avoid losing out on the home. In this market, they feel confident, knowing they can dictate the terms of the sale.
Scenario 3: Selling in a Balanced Market
A balanced market is when the supply of homes matches the demand, and neither buyers nor sellers hold a strong advantage. Homes typically sell for close to the asking price, and there is room for negotiation on both sides.
Megan and Tom in a Balanced Market
In a balanced market, Megan and Tom list their home at a price that’s in line with comparable sales in their neighborhood. They receive a fair offer after a few weeks, and both parties are willing to negotiate.
When the buyer requests a few repairs after the inspection, Megan and Tom agree to fix the major issues but push back on some of the smaller requests. The buyer, understanding that it’s a fair deal for both sides, agrees to move forward with the purchase.
In this market, Megan and Tom find the process to be reasonable and straightforward, with both sides compromising to reach an agreement.
What Does This Mean for You as a Seller?
The type of market you’re selling in has a huge impact on your experience. Here’s a quick summary of how each market affects your sale:
Buyer’s Market: You’ll face more competition and may need to be flexible on price, repairs, and concessions to attract a buyer. Expect longer listing times and potentially lower offers.
Seller’s Market: You’ll be in control, with the ability to price your home higher, receive multiple offers, and negotiate fewer repairs or concessions. Expect a fast sale, often above asking price.
Balanced Market: Pricing and negotiation are more level-headed. Homes sell at or near asking price, and both buyers and sellers are willing to compromise on terms like repairs and closing costs.
Working with an experienced agent can help you navigate the current market, whether it’s a buyer’s, seller’s, or balanced market. Your agent will have the data and intuition to guide you through pricing, offers, and negotiations to ensure you get the best outcome possible.
At Campbell Salgado Real Estate Group, we understand that selling your home is one of the most important financial decisions you’ll make.
With over a decade of experience in the Portland and Vancouver metro areas, we’re here to guide you through the selling process, whether you’re in a buyer’s market, seller’s market, or balanced market. Our goal is to help you sell your home quickly, for the best price, with minimal stress.
If you’re ready to sell or have questions about the current market conditions, text or call us at 503-951-8547. We’d love to help you make your next move!
