Don’t Get Scared Away by a “Buyer’s Market” or “Seller’s Market”

The Florida real estate market remains one of, if not THE, hottest real estate market in the country. People want to be a part of the Sunshine State and take advantage of the many benefits of living here.

After a raucous 2021 on the market, 2022 got off to a similar start. Now, we’re seeing signs the bubble could be bursting in the housing market. But, what does that mean for you?

People constantly throw out the terms “buyer’s market” or “seller’s market” as a means to indicate which side of the real estate equation you want to be on in that timeframe. It’s important to understand what the actual signs of these are, but it’s also important to understand you don’t need to be scared off if you’re on the “wrong” side of the market (hint: there is no “wrong” side of the market).

Defining buyer’s market vs. seller’s market

The difference in these is fairly obvious, but it’s important to understand the actual underlying numbers and causes that lead people to use these terms. It’s all about leverage above anything else.

In a buyer’s market, supply exceeds demand. This means prices should, in theory, take a dip because playing hardball when selling your home could just force buyers to look at one of the many other options available. This gives leverage to buyers to negotiate fair prices, but other factors such as how long housing inventory is lasting on the market, pricing of similar homes, and amenities you’re hoping to secure at your new home can play a role.

In a seller’s market, the opposite situation is present: the demand exceeds the supply. When this happens, the market becomes fast and furious. If you’re hoping to land a prime piece of real estate in Florida when there’s a low supply it may force you to go above and beyond your budget and make exceptions in what you’re looking for. This provides all the leverage to sellers to place prices far above what may seem realistic for the inventory they’re selling.

Instability and unpredictability factors

In either of these markets, there are obvious circumstances present that could dictate your search and negotiations with potential buyers or sellers. However, many people hear the market circumstances and completely change their mindset when they really don’t have to. Whether you’re a buyer in a seller’s market or a seller in a buyer’s market, you can still accomplish your real estate goals.

Even if there are trends present in a specific area, unpredictability is always a factor. If you’re a buyer and you believe you have all the leverage on your side, a seller can still stand firm on their property or another buyer could come along and decide they’ve found their dream real estate, putting in an offer you can never beat. If you’re a seller and believe you have the leverage to negotiate high prices due to low supply, buyers could always decide to stay where they are and leave the market or simply look into communities where the market isn’t so intensive.

We should always use the information and leverage we have to negotiate the best possible price for ourselves, regardless of which side of the market we’re on. However, we should never assume we can or can’t get what we want just because people have claimed the market is swinging in one direction or another. The market is constantly changing and while there may be trends nationally or even in your region, there’s no guarantee the market in your specific community will follow those trends.

Regardless of the market circumstances, we don’t want you to be scared away by the potential. You can’t know if you’re going to get the price you desire until you get out on the market and speak to buyers/sellers. If you want to fulfill your real estate dreams, there are too many factors at play to simply listen to what other people are saying about the market.

At the Law Offices of Ray Garcia, we can help you and your loved ones achieve those real estate goals regardless of the latest trends. We believe in an honest approach to the market while still providing Floridians with the tools needed to close in on their real estate needs. Contact our offices if you need help navigating the market and making the right choice for your family.