In the Real Estate world we will often hear "It's a buyer's market" and then someone else will demand "It's a seller's market". Sadly, the last people to recognize a buyer's market are the sellers and the last people to recognize a seller's market are the buyers.
What's the difference? The answer is very simple.
When it's a buyer's market that just means there are more houses for sale than there are buyers looking to buy. Inventory is flooded and buyers have the upper hand. They can make low offers and sellers have to accept the fact that they are very rarely going to get their asking price. The market favors the buyer.
When it's a seller's market that means inventory is low and there are more people looking to buy than there are people looking to sell. Inventory is low and there are a lot of buyers looking to buy. In a seller's market buyers have to accept that they are usually going to have to pay full asking price and often times more than asking price. Often times in a seller's market we will see "Bidding Wars" where the seller will have multiple offers and will set a deadline. For example, the seller will instruct his Realtor to advise all buyers something to the nature of "Tell all buyers I will make a decision on which offer to take tomorrow at 5:00 PM. Tell them to give me their highest and best offer". I have seen hoises sell for more than $100,000 above list price during a seller's market.
I have vast experience in both buyer's and seller's markets. If you're looking to buy ir sell your house give me a call at 305-731-0501 and I will get you the best deal possible.