Wednesday, March 26, 2014
by Nancy Heim-berg
Buyers and sellers alike tend to have lots of questions when it comes to real estate market fluctuations. Any real estate market will always have times of high and low activity, and fluctuations are not usually a cause for concern. Here is what buyers and sellers should know about fluctuations in the real estate market so that they can plan their actions accordingly.
Information for Buyers
Buyers should know that a drop in home prices is often due to a healthy leveling of activity. As a result, connecting with a real estate agent is the best way to get an overall picture as to the health of the local market. An agent can compare recently-sold properties to those on the market to help buyers know whether they are getting a good deal.
Real estate agents can be an invaluable source of information when it comes to finding the best deals in a given area. Buyers should become pre-qualified in order to determine how much house they can reasonably afford. After that, speaking with a real estate agent will put them on the right path to finding their dream home.
Information for Sellers
Sellers are often tempted to drop their asking price whenever there are market fluctuations. They should consider a number of things before deciding to do so. One of the biggest things that will determine whether or not a home's price should be dropped is its condition. Home that are in top condition tend to fetch more money no matter what the market is like. Even so, an overpriced home is likely to stay on the market, as buyers these days are very savvy when it comes to knowing when a seller is asking too much.
Homeowners may have to compete with local builders when it comes to selling their home if there is a great deal of construction going on in a given area. This is another reason why it is important to consult with a Realtor® to determine if a home is appropriately priced.
Home prices tend to rise and fall based on the law of supply and demand, and market fluctuations are not cause for alarm. Working with a Realtor® is the best way for buyers and sellers to both come out on the winning end of a deal, regardless of the current market situation.
