The average time a home remains on the market in a buyer’s market is longer than it is during a seller’s market. Homes spent an average of 25 days on the market before going under contract during a seller’s market that occurred in 2020. This was down from 30 days on the market in 2019, according to Zillow.
How a Buyer’s Market Works
Those looking to buy a home are better positioned to get what they want when there are more homes on the market than there are buyers. Sellers are competing for the same few buyers. A buyer’s market lets the buyer lead the negotiations. They may want to ask for concessions, such as the seller covering closing costs, and additional inspections. These provisions will minimize their out-of-pocket expenses and better vet the home. Some common concessions to consider asking for include:
The seller covering closing costs, such as inspection fees, title insurance costs, and transfer taxes The seller paying for home repairs, such as those found during inspections The seller paying for new appliances, if necessary The seller paying moving costs
A buyer may also choose to offer less than the list price, especially if the property has been on the market for a significant period of time. But real estate markets are cyclical. Drastically increased home prices and a surge in home listings during a seller’s market can turn things around into a buyer’s market.
