How Can Buyers and Sellers Both Benefit from the Same Market?

The sellers market is still going strong, even after several years. In many communities, the demand for houses is so high, houses are selling for thousands of dollars over the asking price. If someone were thinking of selling their house, this would be the ideal time to do it.

One would think that the increasing home prices that result from this market would be bad news for a buyer trying to get a good deal, but it really isn’t. A strong sellers market occurs when the number of people trying to buy a house is much greater than the number of people trying to sell, which is the case right now across most of the country. One of the forces driving the continuing abundance of buyers is the fact that interest rates have remained very low over the last few years.

The continuing low interest rates allow buyers to purchase more expensive houses without making higher payments. If interest rates are at 7%, as they have often been in recent times, a buyer could afford as much as 20% more than if interest rates were at 9%, as they frequently were in the early nineties.

Another thing that will determine whether or not someone will get a good deal is how important it is for them to get that deal, and how picky they are about the house they want. Even in popular neighborhoods, some houses still sell far lower than the asking price. If you are patient, a buyer may be able to get a good deal. Each buyer has to ask themselves what is really important to them. If someone finds a house they can’t live without, they should make an offer they know is going to be accepted.