David W. Colbeth

Follow the adventures of Bob and Sally as they learn all about the entire process of buying their first home. This video explains what you can expect when making the huge step of becoming a homeowner. 

Buyer's Market or Seller's Market

And what difference does the amount of inventory make?

Why are "inventory" numbers so important to watch?

Generally, the industry agrees that the following 'rules' apply;

  *   less than 4 Months of Inventory = Seller's Market

  *   between 4-6 Months of Inventory = Neutral or Balanced Market

  *   more than 6 Months of Inventory = Buyer's Market

Then you might ask,

"What does a 'Seller's Market' or 'Buyer's Market' really mean?

A quick definition of these terms, from InvestorWords.com are;

   Buyer's Market: A market which has more sellers than buyers. Low prices result from this excess of supply over demand.

   Seller's Market: A market which has more buyers than sellers. High prices result from this excess of demand over supply.

With these guidelines in mind, we can see why inventory is important to watch. If you are looking to sell your home and the market is indicating a Seller's Market, then great! You will likely enjoy lots of buyers previewing your home, maybe even multiple offers, likely a faster sale time, and generally will not have to be aggressive when pricing your home or offer buyer incentives.

If you are looking to sell your home and the market is indicating a Buyer's Market, then you have some work ahead. You will likely not have as many buyers previewing your home, simply because there are SO many to choose from. You will likely have a longer sale time, and will surely need to be aggressive when pricing your home and the home must be in top condition to be competitive. However, when selling your home, if you are aggressive enough with pricing, you can overcome the Buyer's Market issues.

The same but opposite reasons would apply when buying a home. If you are buying a home in a Seller's Market, be prepared for a lot of work! If you are a buyer in a Buyer's Market - when you find a good deal - take it! Remember, there are LOTS of other buyers out there too looking at those 'good deals' too!

• Learn 3 Industry Secrets that Will Help You Buy a Home for Less Money
• 3 Simple Steps to Follow to Slash Thousands of Dollars Off The Price of The Home You Want.
• Buy a Home With No Money Down
• A new program allows buyers to buy a home with no downpayment.
• How to Beat Out Other Buyers to Hot New Listings
• Get a sneak preview of new listings on the market before other buyers with "Priority Access". Priority Access gives you regular VIP bulletins with details on homes you want.
• FREE Special Report - "6 Mistakes to Avoid When Moving to a Larger Home"
• A new report has just been released which identifies the 6 most common and costly mistakes that homebuyers make when moving up to a larger home.
• FREE Special Report - "How To Stop Paying Rent and Own Your Own Home"
• A new FREE Special Report entitled "How To Stop Paying Rent and Own Your Own Home" has already helped dozens of local renters get out from under their landlord's finger, and move into a wonderful home they can truly call their own. You can make this move too by discovering the important steps detailed in this FREE Special Report
• FREE Special Report - "6 Things You Must Know Before You Buy"
• Discover how to avoid these costly mistakes.
• Foreclosure Weekly Report
• Receive a free weekly report on foreclosures in your area.
  Free list of Hottest New Properties, ideal for the first time buyer!
• Free list of the 10 Best Buys that match your home buying criteria
• Free Online Mortgage Pre-Approval
• Put yourself in the strongest negotiating position and find out exactly how much home you can afford with this quick and easy application.
• Free list of Zero Down Homes emailed to you daily
• Find Out How Much You Can Afford in Your Next Home
• Free list of the Very Best Buys of homes on Private Acreage
• Access the Hottest New Listings featuring swimming pools
• Free list of Fixer Upper properties emailed directly to your inbox!
• Fixer Upper Properties: What You Should Know Before You Buy
• Hotlist of Upscale Homes
• FREE Online MLS Home Search
• Awesome New Homes For Sale
• New Homes For Sale. Free List Emailed Daily.
• FREE Special Report - "13 Extra Costs to Be Aware of Before Buying a Home"
• Buyer Beware: Mistakes to Avoid Like the Plague When Buying a Home.
• 3 Critical Steps to Obtain The Absolute Best Financing Rates When You Buy a Home
• Whether to Buy New or Resale