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Property Investing 101: Buyer’s Market Vs Seller’s Market

08/31/2022

For real estate, the idea of a buyer’s market or seller’s market is all about real estate. What does that mean? In property investing, a buyer’s market happens when there are more homes for sale than the people looking to buy them. In a seller’s market, there are more buyers than homes for sale.

If you are new to property investing, it can be tricky to know when your city or neighbourhood has shifted from one to the other, but here is how you can tell.

It favours buyers if it takes more than six months for a home to sell. If it only takes a month or two, it favours sellers. Keep in mind that this is not always 100% accurate. Some markets might buck this trend completely. Nevertheless, it is still a good rule of thumb.

So, what do you do if you are trying to buy a house in a buyer’s market and don’t want to wait? Or if you are selling your home in a seller’s market and want to ensure you get the best price?

How to Navigate a Buyer’s Market When Property Investing in Australia

A buyer’s market occurs when the availability of homes is greater than the people looking to buy them. This usually happens when there is a decrease in population or when there is an increase in the number of available homes in the market. Buyer’s markets favour those looking to purchase a home, as they have more choices and may be able to negotiate a lower price.

Advantages and Disadvantages of a Buyer’s Market

For Buyers:

  • More choice of properties
  • Lower prices
  • More negotiating power

For Sellers:

  • Less demand for properties
  • A longer time to sell
  • Lower prices

Navigating a Buyer’s Market as a Buyer

If you are looking to buy a home in a buyer’s market, the most important thing you can do is be patient. There are more homes available than there are buyers. Therefore, you are likely to find something that meets your needs eventually. Moreover, it is essential to be prepared to negotiate on price when it comes to property investing. In a buyer’s market, sellers are often more willing to come down on the asking price to make a sale.

Navigating a Buyer’s Market as a Seller

If you are a seller in a buyer’s market, it is important to remember that you are not in a position to be picky about buyers. You may have to accept a lower offer than you were hoping for or be prepared to wait longer to find a buyer. When it comes to property investing, marketing your home correctly is still important, even in a buyer’s market. Make sure your property is priced realistically and stage it well to attract potential buyers.

How to Navigate a Seller’s Market When Property Investing in Australia

A seller’s market happens when there are more buyers than homes for sale. This can be caused by population growth or a decreased number of homes available. Seller’s markets favour those looking to sell their home, as they are likely to receive multiple offers and achieve a higher price.

Advantages and Disadvantages of a Seller’s Market

For Buyers:

  • More competition for properties
  • Higher prices
  • Less negotiating power

For Sellers:

  • More demand for properties
  • Quicker sales
  • Higher prices

Navigating a Seller’s Market as a Buyer

If you are selling your home in a seller’s market, the most important thing you can do is to be prepared to negotiate. There will be multiple buyers interested in your property, so you have the opportunity to choose the best offer. It is important to remember in property investing that although you may be able to achieve a higher price in a seller’s market, you will also likely have to pay more for your next home.

Navigating a Seller’s Market as a Buyer

If you are looking to buy a home in a seller’s market, it is equally essential to be prepared for competition. You may need to move quickly when you find a property you like and be willing to pay more than the asking price. Regarding property investing, it is essential to be realistic about your expectations. In a seller’s market, it is unlikely that you will find your perfect home at a bargain price.

Should You Invest in a Buyer’s Market or Seller’s Market?

There are times when the real estate market fluctuates. What is the best time for property investing? Should you buy when prices are low or wait until they start to rise?

Both approaches in property investing have their pros and cons. Investing in a buyer’s market will likely get a good deal on a property. However, you may have to wait for the market to rebound before you see any return on your investment. On the other hand, if you invest in a seller’s market, you may pay more for a property, but you could also see a quick return on your investment if the market continues to rise.

Nevertheless, predicting the future of the real estate market is impossible. No one can say whether prices will go up or down in the short term. However, if you research and stay up-to-date on market trends, you can increase your chances of making a wise investment―no matter what type of market it is.

Start Your Property Investment Journey with Investorfi

When it comes to property investing in a seller’s market vs a buyer’s market, the answer may not be as clear-cut as you think. It is important to remember that there are pros and cons to both seller’s and buyer’s markets. It just depends on your personal goals and investment strategy.

If you want to buy a property now, contact us at Investorfi. We can give you more information about financing options on home investment loans and help you get started on your property investment journey. Contact us today.

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This is what we do.

We are finance strategists in the Mortgage Broking industry, helping Australians build wealth through property investment.

Our sole purpose is to reinvent ways to keep the Great Australian Dream Alive. Because we believe it’s everyone’s right to the security home ownership affords our families and community. Yes, our niche is Finance Strategy for Property Investors, but it is not what we do that makes us tick;
it’s

Because property investment is a decisive step toward financial freedom, we cultivate lasting relationships with our clients. We ain’t just a ‘whame bam, see ya later man’ kinda outfit. In fact, our business is built entirely from our lasting relationships with our clients who have suggested us to their inner circle – their family and friends. That is a pretty big tick of approval and a sure vote of confidence.

This is How we do

What separates us from the rest?

Have you ever considered the difference between Mortgage Brokers?

A Broker worth their salt has a playbook of ‘scenarios’. They are finance strategies that have worked in the past. He will offer up one, two or even three scenarios that he thinks will work best for you. 

But the great ones challenge the status quo, strategising new plays that serve your unique situation and financial goals. They will study, visualise, and fine-tune before offering only the best scenarios that build a rewarding property Portfolio.  

They never let good be the robber of the best and only play to win!

InvestorFi is a group of finance strategists that will design a unique scenario for your state of play towards your long-term game plan.

But don’t just take my word for it.

Clients like Tony F. said: I couldn’t be happier with the service. Wayne was excellent in guiding me through and delivering a great investment loan. Very responsive and savvy investment brokers. Will continue to use their services in the next purchase. 

And like Kim, Wayne is extremely dedicated, professional and a pleasure to work with. He worked tirelessly to help me secure an alternate lender before the settlement date and was extremely prompt and clear in his communications with me. 

And 

Robert wrote: Wayne is always very responsive and takes the time to lay out all the options in plain English.

Reviews like this make our souls sing. We’re in the business of helping people achieve real results that last!

So if you’re looking for a great Finance strategist like these incredible clients, you’re in the right place.

This is why we do

Gone are the days a single income could afford 2.5 kids, a pet, and a four-bedroom house in the burbs! 

At InvestorFi, our sole purpose is to reinvent the great ‘Australian Dream’. Because we believe it’s every citizen’s right to the security home ownership affords our families and community, not just for today but for generations to come.

But because it’s become so difficult, it requires complex solutions. One way is to seek finance strategy before purchasing a home. This way, you can leverage your full potential to live where you want to and invest where you can afford to. 

Property ownership has become a game of ‘finance strategy’, placing a premium on finance know-how. That is why we value education; our mantra is knowledge equals freedom, but knowledge shared is freedom multiplied.  

There is no drought; we have hit a new era with its epic challenges. Not everyone is up for the grind it takes to keep the dream alive. That’s why we also place a premium on camaraderie. We don’t see ourselves as a ‘hit and run’ service but as a hub and a way of life.