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.
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.