Although strict underwriting standards are a good thing, they can make it hard for freelancers, contractors and entrepreneurs to document their ability to repay a mortgage.Those who work on a gig to
Understanding Buyers And Sellers Markets Bay Equity And Selling Made Simple
Dated: August 3 2019
Knowing the differences between a buyer’s and seller’s market can help you feel more confident in the timing of your next home purchase.
Buyer’s Market – Supply exceeds demand
More properties to choose from
More options in terms of location and features
Homes may be on the market longer
Buyers have the advantage when negotiating
Burden is on the seller to price competitively and offer incentives
May indicate a slowing or stagnant economy
Equity growth may take longer
Seller’s Market – Demand exceeds supply
Fewer properties to choose from
It may take longer to find the right home
Homes sell quickly, buyers need to act fast
Less opportunity for negotiation of price and concessions
Burden is on the buyer to make a competitive, well-qualified offer
More common in areas that are experiencing economic growth
Home values rise quickly
The benefits of a buyer’s market are clear. More inventory means more choices, lower prices and a stronger negotiating position. It’s a great time to buy, especially for first time home buyers who don't have to worry about selling their current home.
In a seller’s market, the benefits to home buyers may not be not as obvious but they are significant.
A seller’s market means a growing local economy. Not only will the newly purchased home increase in value more quickly, but local tax revenues will increase as property values increase. This means your new community can invest in better roads, schools and infrastructure. The local job market is likely to be more stable in a growing economy and increased consumer spending will attract new business and entertainment venues to the area.
Long-term, the benefits of living in a strong local economy will outweigh the potential costs of buying in a seller’s market.
In any market, it’s important to start with a reliable pre-qualification from a well-known and experienced lending team like the Boles Group at Bay Equity Home Loans Gilbert. Your Boles Group loan officer can help you determine your budget and recommend a GOOD local realtor who will find the perfect home and negotiate the best possible price regardless of market conditions.
Bay Equity Home Loans – Boles Group is a team of lending professionals located in Gilbert, Arizona and licensed to originate home loans for purchase or refinance in nine states (AZ, CA, CO, ID, MN, NM, NV, OR, WA). Boles Group lending professionals have the knowledge and experience to create solutions where other lenders create problems. The team prides itself on responsive, accurate communication and is highly regarded by clients and business associates alike.
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