by Sally Boone
(Los Angeles, California, USA)
Whether someone is looking to buy or sell a home, most people rely on the real estate market to get the best deal on a home. The market revolves in three cycles, which determines whether you should buy or sell at that time.
Here are the three different cycles and why they’re prime for you get a good deal:
One is the buyer’s market. This is the best time to buy a home in the marketplace. The prices for the homes are generally lower than at other times of the year. The sellers are more likely to accept lower bids from the buyers and they’re more negotiable for repairs done tothe home prior to possession being turned over.
The buyers are more apt to take the upper hand in the deal and control the transaction to the point of gaining earlier possession, because sellers are more interested in unloading the home to get rid of it versus holding out longer and selling it for a higher profit. Buyers can take advantage of these situations and buy low to sell high at a later date.
Another cycle is the seller’s market. The seller’s market is best for those who are interested in selling their home. A seller looking to gain a profit from the sale of their home will wait until this time of year to place their home on the market.
Buyers are more apt to pay the listed price of the home to gain possession. The sellers have the upper hand here and usually won’t pay for any inspection costs, repair costs or closing costs.
Contingent offers of waiting for the buyer’s home to sell are rarely accepted at this time in the marketplace. Sellers generally have multiple offers, so there’s no need to bend on their offers to get the sale.
Buyers become more competitive and aggressive in their bidding to get the home, so sellers sit back and wait for the right offer to come through. This is the best case scenario for you as a seller, but keep in mind that you then have to turn around and become the buyer to find a replacement home.
The other cycle is the neutral one. The buyers and sellers can both get good prices at this time in the market. There isn’t as much competition for a home, but sellers could get an average price, while the buyer could make an average deal.
The neutral cycle doesn’t bend in favor of either the seller or the buyer. The one who makes the best deal is pretty much depending on other factors like how much a buyer likes a home and how many offers a seller might receive for their home.
The real estate market can determine the fate of the home you’re selling or hoping to buy. By waiting until the market is right for your situation, you could either make a decent profit from the move or get a low offer accepted.
Even the real estate tycoons rely on the market for their high profit deals. They live by the goal of buying low and selling high. The real estate market helps them reach that goal in the marketplace.