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Market Conditions One of the factors affecting prices of homes is market conditions. Buyer's and Seller's Markets are just as you would guess... a Buyer's Market is favorable to buyers and a Seller's Market favorable to sellers. In general, when "days on market" is less than 30 days, it's a strong seller's market and you may be faced with multiple buyers competing for a home which could possibly create a bidding war. On the other hand, in a slow-moving buyer's market, homes may get re-listed with several agents as sellers get discouraged or want to make their look like a 'new' listing on the Multiple Listing Service (MLS). When the marketing time is over 75 days, you are in a buyer's market which means there are more homes competing for home buyers in the market. Sellers may have to offer price reductions and other concessions to get their homes sold.
Another criterion used to determine the market condition is the `sale to list price ratio'. Nationally, homes generally sell between 94 - 97% of asking price, depending on the market. Buyer's Agents can provide comprehensive data about the market to home buyers because they are not working for the sellers are are under no obligation to get the sellers the highest price for the home. |
