As I said in the previous video, (Demand & Competition) which kind of market you’re selling in makes a huge difference to your decisions. This is a big topic, so I’ll run through quickly the market characteristics.

Number 1 You’ll know when you are in a buyer’s market because the first indication is fewer buyers enquiring. Fewer at open days and less general enquiry during the week. There will be more “for sale” signs everywhere. More listings generally in your neighbourhood, more advertised on the net and so on. One of the reasons for that is average days on market blow out. In some cases in some areas, houses take on average, 150 days to sell. Competition can build up. More homes for sale means the possibility of more just like yours for sale, more for buyers to choose from. Now simply, fewer sales in a buyer’s market. Prices in these markets can be stalled, or even dropping. Due to the lack of competition between buyers. The buyers have the power here, especially during the negotiation process. If we don’t engage with their price, they simply walk down the road to the next property for sale. Auction results are low for ”under-the-hammer” sales. The marketing process overall might get the result, but the under-the-hammer sales can drop. Now let’s compare that to the opposite.

Number 2 is the seller’s market. There are more buyers around, more at open days. This can create pressure to make decisions. Fewer homes for sale, fewer “for sale” signs and fewer advertised on the web. That means buyers have fewer to choose from, creating more pressure. The average number of days on the market drops. It can be as little as a week. Less stock means less competition from other properties on your home. Now, the volume of sales is higher. Prices will be firm or even rising. The seller has the power here. You can say, “If you don’t buy my house today, there will be another buyer that comes along real soon.” And lastly, sales under the hammer for auction go up. 90+ % is not uncommon in a great seller’s market.

Finally, Number 3 is the balanced market. This is where the sales match the houses coming onto the market. In this market, a particular house might put itself into one or other categories. A great house might put you in a strong selling position. It is imperative to understand the dynamics of your market.

Start reading, visiting websites and figuring out just what’s happening in your market, in real time.