Find & Post Wholesale Property Listings for Free. Find cash buyers, real estate investors, property finders through out the United States.

Share

What Makes A Real Estate Market a Sellers Market Versus Buyers Market?

I am going to go through and help you identify the difference between a Sellers Market versus a Buyers Market.  A real estate agent will help you with metrics to differentiate between each type of market.  Please keep in mind, not all real estate agents are created equal, but if they are actively doing real estate in that region, they should know the current state of the local real estate market.  They will get this information per quarter from the local board of Realtors.  A real estate agent pays to have access to the MLS, which gives them access to all of these metrics real time.  So, let’s go get into the details of what determines a Sellers Market versus Buyers Market.

  • Sellers Market – If the Days on Market (DOM) is less than 90 days, the active inventory on the MLS is less than 6 months, and more than 3% appreciation in that area, you have a Sellers Market.  I want to define the term inventory for you.  The inventory metric represents the amount of active properties listed on the MLS versus the number of buyers buying up this inventory at any given snap shot of time.  Just think of it this way, when there is an increase in demand, supply will drop and prices will increase.  It is all just another example of supply and demand.
  • Buyers Market –   If the Days on Market (DOM) is more than 90 days, the active inventory on the MLS is more than 6 months, and less than 3% appreciation in that area, you have a Buyers Market.  I want to define the term inventory for you.  The inventory metric represents the amount of active properties listed on the MLS versus the number of buyers buying up this inventory at any given snap shot of time.  Just think of it this way, when there is a decrease in demand, supply will increase and prices will decrease.  It is all just another example of supply and demand.

Now, I want to take this a step further and define the types of properties that a Rehabber would need to look for, in order for their aggressive offer to get accepted in each type of real estate market.  In a Sellers Market, a Rehabber will want to focus on Distressed Sellers & Distressed Properties.  If a Rehabber wants to get their ( Example: 70% ARV – repairs) offer accepted in a fast moving market, they need to focus on sellers who need to sell quickly and properties that have condition issues that will hinder this property from qualifying for FHA or VA financing.  Whereas in a Buyers Market, A Rehabber will want to focus on Distressed Sellers OR Distressed Properties.  Did you notice the difference between the two?  In a competitive real estate market (Sellers Market), you need to be that much more exact and focused on the right properties, in the right market, and offer the right offer.

Category : Blog &Cash Buyers &Real Estate Market Cycles &Wholesale Property

About Us

We are seasoned real estate investors and trainers who have seen and experienced the challenges that real estate investors face in any area in any economy. We have seen how difficult it can be for new real estate investors to build their buyers list in this economy, so they can start making money in real estate. Our company knows how challenging it can be to located great wholesale deals in unfamiliar markets. For this reason, we created this website to help match wholesalers with great wholesale deals nationwide.

Testimonials

WholesaleDealmatcher.com is a true resource for any Real Estate Investor. Whether your new to the game or seasoned. You will find what the resources you need to make any deal happen.

- Nolan H.