REAL ESTATE MARKETS
WHAT'S HOT?
This is an extremely competitive market, one that is advantageous to the seller.
Sometimes, homes will sell as soon as they are listed or even before homes are listed. Typically, during a hot market, multiple offers will be made on each home and more often than not, homes will sell for more than their asking price.
It is crucial to be prepared and to be ready as a buyer when the market is hot. It can be easy to get caught up in the bid for a home, but if you are prepared (pre-approved, solid in price range, realistic about your needs), it is easier to remain focused on your housing needs and price range.
In a normal market, there is fairly a large number of homes available and an average number of buyers.
This market does not necessarily favor the buyer or the seller. A seller may not have as many offers on their home, but he or she may not be desperate to sell either.
Again, it is the buyer's responsibility to be prepared. During a normal market, the chances to negotiate are higher than in a hot market. As a buyer, you can make offers at lower than the asking price and negotiate a price.
THEN THERE’S COLD...
In a cold market, houses may be listed for more than a year and the prices of houses listed may drop considerably.
This market is advantageous to the buyer. As a buyer, you have the time to make an offer that works in your best interest. It is not uncommon to make a low offer and find that sellers will accommodate your price.
Keep in mind, though, that even if this market is a great time for buyers, do not lose your dream home by being unrealistic.
Your goal is to get your home at the best possible price.