Real estate agents all over the country know exactly what type of market we are in. But as a novice home buyer or even someone that just doesn't pay that much attention to the current housing trend, a buyers or sellers market may be confusing to them. What kind of market do each of these benefit and how to tell which we are in now?

The term alone can help give some insight into what the market means. A buyers market tends to be geared more toward buyers where as a sellers market toward sellers. But how does that affect one or the other parties involved in a real estate transaction? Let's break down the two to get an idea of what each actually means.

BUYERS MARKET - A buyers market typically means one in which the buyer has the upper hand. There are usually more homes on the market than there are buyers therefore the buyer has the pick of the litter so to speak and usually at a good price. Buyers markets usually have a good selection of homes, land and properties for sale and sellers are more likely to accept offers no matter how low.

Buyers usually can get bank owned homes, below market value homes and properties, and get sellers to do just about anything. If there is a seller unwilling to budge on price or repairs, there is a seller down the street ready to give in. Buyers definitely have the upper hand in this market but it also depends on the interest rates. Rates can vary and even if there are tons of homes on the market, there still can be a high interest rate keeping buyers from being able to afford these homes.

Sellers have quite a task in this market. This isn't the list today, sold tomorrow type of market. Sellers must be serious to put their home on the market in this field. Sellers usually won't get what the home is worth and will probably have to jump through several hoops to get the deal closed. Homes can and do sell during this time but at what cost is really the issue for the seller.

SELLERS MARKET - A sellers market is the opposite where there are so many buyers and not enough homes to be sold. From about 2002 - 2005 there was a huge bubble that eventually burst around 2007. There were just not enough homes to keep on the market before they were sold. Buyers were snatching up homes left and right and even putting in bids for homes above the asking price with escalation clauses stating they would pay so much above the highest offer. It was easy to sell a home and most homes sold within a month of being listed if they were anywhere reasonably priced.

Buyers had excellent interest rates and the sub prime mortgage fad was in full swing. It was easy to buy and everyone was. The problem is that when the interest rates came due, all those buyers couldn't afford the mortgage anymore and that bubble caused the issues we are in now with too many home in foreclosure and short sales. These same buyers that took advantage of overpriced homes and easy mortgages back then are the same sellers or borrowers moving out of those homes.

Each market has it's ups and downs. Each has pros and cons. The trick is learning when to sell and when to buy. Not all buyers buy at the right time and not all sellers sell at the right time. For investors, this timing is crucial. They must understand the current market and research the trends carefully.

If you are in the market for a home or need to sell anywhere in the Tacoma real estate area consider the trusting agents and brokerage firm of Crescent Realty. With experts in Thurston County real estate and Tacoma homes, you are sure to find what you need or help selling.