• Contact Us
  • Become A Member
  • Business
Online Banking Login
Forgot password? Not signed up? Enroll Now
  • Personal
    • Checking Accounts
    • Savings Accounts
      • Money Market Accounts
      • Health Savings Accounts
      • Share Certificates
      • IRA
    • Mobile & Online Banking
      • New Digital Banking
    • VISA Debit
    • VISA Credit
    • Insurance
    • HERO Financial Counseling
    • Teen Debit Account
  • Loans & Credit
    • Auto, Motorcycle and RV Loans
      • Auto Buyer’s Guide
      • Shop Enterprise Car Sales
    • Personal Loans
      • Personal Loans and Line of Credit
      • Credit Builder Loan
    • Student Loans
      • Smart Option Student Loan®
      • Money Tips For College Students
    • Rates
    • VISA Credit
    • Pay Loans Online
    • Credit & Financial Review
  • Home & Mortgage
    • Home Equity Loans
    • Mortgage Team
    • Mortgage Process
    • Rates
    • First-Time Homebuyer 101
    • Pay Your Mortgage
  • Financial Planning
    • Financial Planning Team
    • Guided Wealth Portfolios
    • Financial Planning Resources
    • Financial Planning Account Access
  • About Us
    • Younity
    • Eligibility
    • ATM & Branch Locations
      • Boyertown
      • Cumru
      • Exeter
      • Muhlenberg
      • Pottstown
      • Royersford
      • Tower Health Reading Hospital
      • Contact Center
      • Wyomissing
    • Careers & Internships
    • Annual Reports & Board Election
    • Community Involvement
      • Scholarships
      • Charity Golf Invitational
      • Calendar of Events
    • Mystery Shoppers
    • Contact Us
  • Learn
    • Blog
    • Diamond Youniversity
    • Zogo Financial Education App
  • Tools & Resources
    • Calculators
    • Account Management Tools
    • FAQs
    • Transfer Funds
    • Financial Safety & Security
Online Banking Login
Not signed up? Enroll Now
Forgot password? Not signed up? Enroll Now
  • Personal
    • Checking Accounts
    • Savings Accounts
      • Money Market Accounts
      • Health Savings Accounts
      • Share Certificates
      • IRA
    • Mobile & Online Banking
      • New Digital Banking
    • VISA Debit
    • VISA Credit
    • Insurance
    • HERO Financial Counseling
    • Teen Debit Account
  • Loans & Credit
    • Auto, Motorcycle and RV Loans
      • Auto Buyer’s Guide
      • Shop Enterprise Car Sales
    • Personal Loans
      • Personal Loans and Line of Credit
      • Credit Builder Loan
    • Student Loans
      • Smart Option Student Loan®
      • Money Tips For College Students
    • Rates
    • VISA Credit
    • Pay Loans Online
    • Credit & Financial Review
  • Home & Mortgage
    • Home Equity Loans
    • Mortgage Team
    • Mortgage Process
    • Rates
    • First-Time Homebuyer 101
    • Pay Your Mortgage
  • Financial Planning
    • Financial Planning Team
    • Guided Wealth Portfolios
    • Financial Planning Resources
    • Financial Planning Account Access
  • About Us
    • Younity
    • Eligibility
    • ATM & Branch Locations
      • Boyertown
      • Cumru
      • Exeter
      • Muhlenberg
      • Pottstown
      • Royersford
      • Tower Health Reading Hospital
      • Contact Center
      • Wyomissing
    • Careers & Internships
    • Annual Reports & Board Election
    • Community Involvement
      • Scholarships
      • Charity Golf Invitational
      • Calendar of Events
    • Mystery Shoppers
    • Contact Us
  • Learn
    • Blog
    • Diamond Youniversity
    • Zogo Financial Education App
  • Tools & Resources
    • Calculators
    • Account Management Tools
    • FAQs
    • Transfer Funds
    • Financial Safety & Security

Buyer’s Market or Seller’s Market: How to Approach Each as a Homebuyer

Index

  • What is a Buyer’s Market?
  • What is a Seller’s Market?
  • What Type of Market Are We In?
  • Buying in a Buyer’s Market
  • Buying in a Seller’s Market

When you start your homebuying journey, it’s important to know if you’re buying in a buyer’s market or seller’s market. Understanding how to approach each market can help you set realistic expectations and make the homebuying process go smoothly.

What is a Buyer’s Market?

Real estate is operating in a buyer’s market when there are more houses for sale than buyers who are looking for a new home. A buyer in this market will have a larger inventory of houses to evaluate and consider. Additionally, buyers may have the opportunity to buy a home at a better price because sellers are more eager to sell.

Sellers, on the other hand, should be prepared to see their house sit on the market longer. They may also need to accept a lower price and more concessions to make the sale.

What is a Seller’s Market?

In a seller’s market, there are more homebuyers on the hunt than houses available for sale. Houses will sell very quickly and may sell for more than the asking price. As a homebuyer, you may face a “bidding war” over a desirable property.

Seller’s markets are also called a renter’s market because first-time homebuyers may decide to keep renting until the market changes.

What Type of Market Are We In?

Here are a few general guidelines to help you determine whether the current market is a buyer’s market or seller’s market:

  • June, July, and August tend to be buyer’s markets, with many homes for sale.
  • Winter months tend to skew to the seller’s advantage, with fewer homes for sale.
  • Areas with lots of job expansion and population growth tend to be seller’s markets.

In addition, these figures can also offer clues to the current real estate market:

  • Number of homes for sale — When houses are slow to come onto the market, you’re in a seller’s market.
  • Recent price cuts — If home prices are being cut, it’s most likely a buyer’s market.
  • How long homes are on the market — When homes stay on the market for weeks or months, it’s a sign of a buyer’s market.
  • How many months of inventory are available — Zero to four months of inventory signifies a seller’s market, while anything over eight month means a buyer’s market.

More locally, here is information on buyer’s/seller’s market conditions in Berks County:

  • Average home prices have been steadily on the rise since January 2018, from $180,000 to just under $220,000 in May 2018.
  • Home inventory levels have decreased from 460 homes at the start of the year to just over 420 homes in the spring.
  • Homes are currently spending about 160 days on the market.

Buying in a Buyer’s Market

When you are buying a home in a buyer’s market, you have certain advantages. Most importantly, you may be able to purchase a better home at a lower price if it has been on the market for a while and the seller needs to sell quickly.

buyer's market - image of family moving into a new houseAdditionally, you can benefit from your position by asking for:

  • Contingencies (offer is contingent on inspection), allowances or credits (money to update worn flooring), and closing cost assistance.
  • A shorter acceptance period (seller’s time to review your offer and accept/counter offer).
  • A price renegotiation if the home inspection raises flags.

Buying in a Seller’s Market

When you’re buying during a seller’s market, you might be the one having to make concessions. Here is our advice on what you can do to put yourself in the best position possible to buy the home you really want:

  • Have your pre-approval documents ready. This shows you’re a serious buyer.
  • Be ready to view homes quickly, don’t wait for the weekend.
  • You may need to make your offer at no less than list price.
  • You may be required to make a larger earnest money deposit.
  • Don’t make too many requests (ex: asking owner to make small repairs, include the washer & dryer in the sale, or pay to replace old carpeting).
  • Be prepared to cover all closing costs. Avoid asking for seller’s assist to cover these costs.

Whether you’re buying your home in a desirable buyer’s market or a fast-moving seller’s market, the mortgage experts at Diamond Credit Union can help you get financing in order quickly and efficiently. Contact us today!

TAKE ME TO THE MORTGAGE CENTER

Index

  • What is a Buyer’s Market?
  • What is a Seller’s Market?
  • What Type of Market Are We In?
  • Buying in a Buyer’s Market
  • Buying in a Seller’s Market

Notice

You are leaving Diamond Credit Union website. Clicking proceed will take you to a website that Diamond may not be affiliated with and may not represent the views of the credit union.

  • About Us
  • ATM & Branches Locations
  • FAQs
  • Contact Us
  • Card Emergencies

Equal Housing Opportunity.

Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government by the National Credit Union Association, a US Government Agency.

Local Phone Number: 610-326-5490
Toll Free Phone Number: 800-593-1000
Routing Number: 231385154
  • Third Party Notice
  • Privacy Policy
  • Sitemap
  • Browser Compatibility