Buyer’s market vs. seller’s market

A seller of real property would not want to sell in a buyer’s market and a buyer would rather not buy in a seller’s market.

Sounds confusing? Let me explain.

Buyer’s market and seller’s market are real estate jargons that mean the exact opposite of each other.

But I think you’ve guessed that by now.

Anyway, on to my explanation.

A buyer’s market happens when there are more sellers of real properties than buyers.

Naturally, when such a scenario occurs, the law of supply and demand dictates that prices of properties go down. Buyers would benefit from buying in such a market.

If you’re a homeowner selling in a buyer’s market, you may benefit from some good tips in the Realty Times website. The website is for a US audience but the advice is applicable to selling in the Philippine setting.

Seller’s market

A seller’s market, on the other hand, is when there are more buyers than sellers. High prices of properties result from this scenario.

A seller would benefit from selling in such a situation but buyers may find themselves paying more for properties.

So whether you’re a buyer or a seller, it might be to your advantage to determine first the state of the market before proceeding with your transaction.