BUYERS vs. SELLERS MARKET.
“ The spirit of a nation begins in the homes of its people” – Don Ward.
Words that crops up in almost every conversation regarding property are: “ Buyers market” and in the not so distant past, “ Sellers market”
These two concepts have a more serious impact on the housing market than meets the eye. In its simplest form it equates to ‘supply’ and ‘demand’.
A Sellers market is characterised by an oversupply of buyers and not enough properties to buy. To all sellers this is the “golden time” when they can be firm on their price and the conditions of the sale. If Buyer number 1 is not prepared to pay the price, Buyer number 2 and 3 will. With the recent ‘Sellers market’ of 2002 – 2008 still fresh in the minds of sellers, the realisation that the ‘Sellers market’ is over, has not sunk in with some sellers.
A ‘Buyers market’ is characterised by an oversupply of properties for sale. Here the buyers have a field day as they know they can bargain hard and set the conditions of the sale. Should Seller number 1 not accept his offer, then seller number 2 or 3 down the road will be happy to accept.
The implications for today’s buyers:
What does all this mean if you are in the market for a residence for yourself?
If you are consecutively selling your property to buy another for yourself, it doesn’t matter in which market you find yourself. You either buy and sell ‘high’ in the ‘sellers market’ or low in the ‘buyers market’.
For you buying or selling matters only to move around to suit your individual living needs. The property market should not concern you and all the jargon about Buyers - or Sellers market should be forgotten. Just find the property you love.
The implications for today’s investor:
What does all of this mean if you are buying to add another property to your current property portfolio ?
For investors the situation is entirely different. Dr. Dolf de Roos, the author of “ Real Estate Riches” says “ once you understand why property is such a phenomenally lucrative and astounding simple investment vehicle, “ you will make it your business to study the market place to find out when it is the ‘Buyers market’. This is the golden opportunity to find and bargain your way into investments that will benefit you financially in the long run.
Although the current ‘Buyers Market’ offers excellent opportunities for buyers, sellers must beware as today’s buyers are well informed of the current market conditions.
The slow ebb and flow of the property market will always bring about the two distinct market tendencies. This has tremendous implications for sellers of today as your buyer may just pass you by because you are still clinging to prices of four years ago.
The Pitfalls of Overpricing your property:
· Buyers just pass you by
· The marketing period extends
· Your property becomes overexposed and loses its attraction.
· Your property are being used to show off the ‘better buy’ down the road
· Potential buyers becomes discouraged and finally
· Your house sells below even the current market value.
The Advantages of pricing your property correctly:
· Creates a faster sale.
· Leaves the impression of good value
· More exposure to more buyers
· Less disruption and less disappointments
· Attracts higher offers
In all cases the price is the most important negotiating factor to the buyer. Buyers compare price and value for money and by ‘overpricing’ your one chance to “make the right impression” will eliminate you chance to get the best price for the market you are finding yourself in.
All of us need a roof over our heads no matter where we are or who we are.
“The strength of a nation derives from the integrity of the home.” –
For FREE market evaluations of your property call on the property professionals of HARCOURTS DOLPHIN COAST, the Harcourt’s office near Willard Beach, Ballito’s main beach on 032 946 2331.
Ida du Plooy
082 540 2534
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