The average time it takes to sell a home indicates the market climate. It is very important that a seller understands the market they are selling within, and the average time it takes to sell a property.
There are three types of market climates:
1) A seller’s market
A seller’s market is where there are lots of buyers looking to purchase, and very few homes available for sale. This high demand for property is in the seller’s favour, as properties spend less time on the market and sale prices increase due to scarcity.
For sellers this is the perfect scenario, where they can be firm on price and the conditions of sale. That is, if a buyer is not prepared to pay the price with the required conditions, then buyer number two or three will.
2) A buyer’s market
A buyer’s market is in reverse. There are lots of homes for sale and very few buyers. This high demand for buyers is in the buyer’s favour, as properties stay on the market much longer, and sale prices reduce to compete for “ready-to-purchase” buyers.
Here the buyers are in a strong position. They know they can look for a price reduction and influence the conditions of the sale. They also know that should a seller not accept their offer, they can look at other suitable properties that will accept their terms.
3) A balanced market
A balanced market is where the numbers of buyers and properties for sale are about equal. Neither buyer nor seller has an advantage as properties are not languishing on the market, nor are they desperately being snaffled up.
You should ask your Sales Consultant about the current market in your location.
However, you should keep in mind that if you’re selling your property and then buying another in the same market, the current market climate is not as important. You are either buying and selling ‘high’ in the ‘seller’s market’, buying and selling ‘low‘ in the ‘buyer’s market’, or transacting in a balanced market. With any of these scenarios you are not disadvantaged as you are buying and selling within the same market climate.
Should you have any questions on your real estate needs, contact the professionals at Harcourts The Property People on 4628 7444.