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How Do Market Trends Affect the Value of My Property?Market trends and the real estate cycle can affect your property value. Have you ever heard somebody say "we are in a seller's market" or "we are in a buyer's market?" These are the 2 basic types of trends. The trend takes into account the number of buyers and the number of sellers at any period of time. This focuses on how fast the properties sell. The trend develops based on what the buyers are willing to pay and what the sellers are willing to sell for. Many times this dynamic change in the market is community or regional specific rather than a national phenomenon. In the buyer's market the buyer has the advantage and vice versa in the seller's market.
The Seller's MarketThe Seller's market would be a period of time when property might only stay on the market a week. The seller has no problem selling for their asking price as buyers compete against each other for the property. At this time the demand is high and supply is low. The seller definitely has the advantage.The Buyer's MarketOn the other side, in a buyer's market there is usually a large inventory of properties on the market and economic indicators may be good, employment high and interest rates low.The buyers may have money and qualify, but they are not interested in paying full face value. They know that if they sit on the sidelines and watch for properties selling at a discount, perhaps finding a seller that needs to sell quickly, they will get the deal. Buyers definitely realize when they have the advantage.
How Can the Seller Keep the Advantage in a Buyer's Market?If the seller will offer seller financing also sometimes referred to as owner financing, the seller will maintain the advantage in a buyer's market. This is as good as gold. With seller financing, the seller will always have the advantage in any market.
You do not have to discount the value of your property just because the housing trend in your community happens to be in a buyer's market at the time you want to sell.If you take some time to explore the many options that you will have if you offer selling financing, you will not suffer because of a current market trend. You will be able to satisfy the needs and wants of a buyer while taking care of you and your family's expectations at the same time. The Real Estate CycleThe real estate cycle refers to the current market trend- whether it is a seller's or buyer's market.Each market goes through a complete cycle an average of about eight years. If you are in a part of the U.S. that just experienced a seller's market and is presently entering a buyer's market, then you know where you stand. By recognizing this you can time the sell of your house and have further advantages using seller financing. Remember by offering seller financing you will be adding an extra dimension to your marketing and prospective buyer base will grow.
What Other Factors Influence My Property Value?
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