Home Buying Advice - How Market Conditions Affect Offer Price
How different real estate markets conditions can impact the purchase offer price.
How Market Conditions Affect Offer Price
When we are in a sellers market (named because the seller is seen has having the advantage) homes can sell very quickly. In fact they can sell the same day they are listed and often have multiple offers. In this type of market it may not be wise to try and low ball your offer, you may lose out to another buyer, or the seller may just ignore your offer and wait for a better one to come along.
When we are in a buyers market (named because the buyer is seen has having the advantage) homes take longer to sell and may be on the market for months. Buyers can take advantage of this and put in a low offer. It the seller is keen to sell they may well counter the offer and the negotiations can begin.
When we are in a stable market it may be more difficult to decide if you want to put in a low offer or not. There is still the chance that someone may better your offer and you lose out on your dream home. In the end it just depends on how badly you want the property.Return to Home Buying Advice