Not all real estate markets are equal. The cost of buying a house and the level of competitive bidding will depend on the balance of supply and demand in your city or town.
What is a Buyer’s Market in Real Estate?
A buyer’s market in real estate is when the demand for houses is exceeded by the supply, driving down the price of individual homes due to competition. This can happen because there is a surge of new development providing an excess of homes, or because the demand for the current supply of homes dwindles. In either case, it benefits any potential home buyers, who have more leverage in negotiations with sellers.
You can track which cities are buyers’ markets and sellers’ markets with Zillow. According to The Close, home buyers visit an average of 8 properties before closing. In a buyer’s market, they have an advantage and can (within limitations) negotiate a lower price or other conditions that the seller might not agree to in different market conditions.
Investing in Real Estate in 2022
A Title Company can help cut through the red tape of real estate investment and make the process easier and more profitable for independent investors. Buying properties in markets that are growing this significantly is a pretty safe investment, but it still involves a lot of paperwork.