Understanding market situation before buying or selling
Many people sale or purchase properties in their life. Some people sell their properties at low prices while others buy on high rates. This is only due to lack of market knowledge. One should sell or buy property as per market situation. Here are the top points for understanding market situation before buying or selling real estate properties.
Buyer’s real estate market
A market where properties are more than the buyers is known as the buyer’s market. In buyer’s market, buyers have better choice due to large number of properties. In buyer’s market, buyer always gets cheap properties due to strong bargain position.
Seller’s real estate market
A market where properties are less than the buyers is known as the seller’s market. In seller’s market, buyers have little choice due to limited number of properties. In seller’s market, sellers always get high prices for their properties due to the limited stock and high demand.
When is the right time to buy or sell a property?
Firstly, economic condition is the good indication of market situation. When economy is booming, people get jobs and move towards cities which increase the property demand. Due to high demand property price increases. On the other hand when economy declines, people shift to other areas. Due to this shift property demand and prices decrease.
Secondly, real estate price trend is also the good indication of market situation. Property price rise is the indication of low stock and high demand and vice versa. When property prices are rising, it’s time to sell properties to get good profits. Whereas, when property price is falling it’s time to buy property to get cheap deals.
Thirdly, housing stock is also the good indication of market situation. When housing stock is high, property prices are low. But when stock is low property prices are high due to high demand. Therefore, it is highly recommended to buy property when stock is high and sell property when stock is low.