Navigating real estate is like artwork. You choose your own canvas, sketch out your own vision, and paint your own picture. Sometimes, however, a few strokes could be all the difference between a beautiful painting and a clumsy sketch. Just like real estate where how you tread a market favouring buyers or sellers makes a huge difference to your outcomes.
What is Buyer's Market vs. Seller's Market?
In a buyer's market, buyers have an edge over sellers. A buyer's market means an excess supply of properties, driving down properties' prices. In a market with an oversupply of properties, buyers will have an advantage in negotiating terms and prices. Conversely, a seller market favors the sellers. A seller's market is when the demand for property exceeds the supply, leading to sellers gaining the upper hand. It is crucial to identify which market you are in to strategize your move and maximize your profit.
Points to remember for buyers
Research: Gain as much information as possible by researching the property you are interested in. Find out about the location, prevailing market conditions, and other relevant information to make the right choice. Factors such as amenities, infrastructure, connectivity, and potential for future growth are significant and cannot be ignored lest you want to lose your hard-earned money.
Decide a Budget: Before making any purchase decision, knowing your purchasing power and how much you can afford to invest is crucial. Set a realistic budget based on your financial capabilities and involve a financial advisor in planning for a hassle-free experience. Pay attention to additional costs such as stamp duty, registration fees, etc. A holistic understanding of the resources required is important to make the right decision.
Take the help of a trusted real estate agent: No matter how much you research a property, your understanding will never be better than a local real estate agent with deep expertise and vast experience in dealing with local properties. A reputable and trustworthy real estate agent can offer valuable insights and perspectives and guide you in choosing the right property without cost overrun and other hassles. A real estate agent negotiates on your behalf, ensuring a good deal at competitive prices.
Keep all options open: One of the biggest mistakes buyers make is to limit their options. Keep your property horizon broad. Explore as many properties as possible before zeroing in on one which offers you the best deal. Exploring multiple properties allows you to compare prices, amenities, location advantages, etc.
Negotiation skills: Effective and efficient negotiating skills are prerequisites to securing the best property deal for yourself. If you are not confident about your negotiating skills, take the help of a real estate agent. Before making a purchase decision, understand the property's market value and make an offer accordingly.
Tips for Sellers
Sellers operate in the same market as buyers, and the relationship between sellers and buyers is that of mutual dependence and interest. Sellers must be mindful of market dynamics and demand direction to navigate the buyer-seller market successfully. Buyer-seller market, as mentioned above, favors the buyer. For a seller operating in a market tilting in favor of a buyer, it is crucial to understand the market's fundamentals to make the right decisions.
Here we present a few effective and efficient tips for sellers operating in a buyer-seller market:
Property Valuation: Property valuation is the most important factor you cannot ignore. Getting a professional valuation of your property gives you an idea about your property's market worth. Overpricing your property will deter potential buyers while underpricing will lead to financial loss. It is crucial to know the worth of your property to avoid loss -- financial or otherwise.
Differentiate your property: Gone are the days when buyers had limited options. Today, when the government has allowed 100 percent FDI in developing the real estate sector and the market is saturated with real estate developers, buyers are spoiled for choices. As a seller, you need to differentiate your property from the others. Ensure to declutter and repair your property to enhance its aesthetic and overall appeal. Making minor renovation investments leads to handsome returns.
Effective Marketing: Effective marketing is key to securing a good deal in a buyer-seller market. Leverage the power of social media. Invest your time developing networks with local real estate professionals and reach out to larger audiences to create a robust funnel. Hire professional photographers and ensure your property has high visibility on the internet.
Flexible: Flexibility is the key to securing a good deal. Be open to negotiations, understand market trends, and tweak your offers according to need and market.
Legalities: Never cut the corner to make a few extra bucks. Ensure to have everything is documented. This will help you build trust with potential customers and streamline the selling process.
How does it stack now?
According to a report published by IBEF, the market size in India will be US$1 trillion in 2030, a five-fold increase from 2021. The real estate sector is predicted to contribute 13% to India’s GDP by 2025.
The unabated growth is fuelling an infrastructure boom, feeding into real estate exponential growth. It is time to seize the moment and make the most of available opportunities.
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