Ok so we covered the Seller’s Market, but what’s a Buyer’s market? Just the opposite right? Mostly, yes.
Again, by definition, stock is plentiful and buyer’s are able to keep the prices down. It might seem like an idyllic scenario where we are able to dictate what we want the prices to be as the buyers. In real estate, this might actually come to pass on a case by case scenario.
Let me give you an example. In East Nashville, right now, it’s surprisingly hard to buy a house in the $300-350k price range. It’s competitive, and the prices are super high, because people will pay a lot to be in that neighborhood. But just up the road, one zip code away, in Madison, houses in that price range will sit on the market for a month at a time, even right now when inventory is very low. Another point to make is that a $300k house in East Nashville might only value at $270k Madison. But the rate at which the value is increasing is actually pretty similar, so the investment is not much different for a buyer that needs to be at a lower price point to be more competitive.
In terms of proximity to downtown, and even to certain neighborhoods around East Nashville, you’re no farther away in Madison. But because it’s not “in” 5 points, or Inglewood, or one of the other neighborhoods we familiarize with the East Nashville vibe – people are less likely to look there for what amounts to the same types of houses.
Here’s what’s most important to know about real estate markets, in my opinion: neighborhood “hot spots” come and go, so location should be more about “proximity to” rather than “proximity in” and prices are dictated by the demand of a house, not of a market of even of a neighborhood.
For sellers, you’ll know that your house is being marketed and sold correctly if the types of offers you’re getting look like the ones you want. For buyer’s, you’ll know you’re looking for the right house when it meets all your needs, and you’re able to be competitive in your offers.
The best case scenario is one where the relationship is symbiotic and simpatico. Your best bet is to have a pro in your corner that knows how to help you find the best case scenario. Good luck!