If you're looking to buy or sell a house, you've likely heard the terms buyer's market and seller's market. Knowing the differences between these two situations can help ensure you buy or sell in the real estate market most beneficial to your goals and bottom line. To understand their distinctions, below are a few key differences between buyer's and seller's markets.

Buyer's Markets

In this market, the home buyer has the advantage because there are more available houses for sale than there are potential buyers. As a result, those planning to sell a house will price their properties more competitively. This is the simple economic principle of supply and demand at work. There are several reasons which might lead to a buyer's market, including a crash in the overall real estate market, a lack of job opportunities, forcing residents to leave the area, and developers building new tracts of housing.

Seller's Markets

In a seller's market, the number of home buyers exceeds the number of people looking to sell a house. In other words, there are more potential buyers than there are properties available. A natural consequence of this is that more than one buyer will be interested in a home, and the interested parties will engage in a bidding war to offer the most attractive price to the seller. The seller often sells the home for a higher price than the one originally listed. A seller's market can be the result of lower interest rates, which means more prospective buyers can pre-qualify for home loans; also, job growth in or popularity of a certain geographic area can create the conditions for a seller's market.

When you're planning to buy or sell a house, trust the real estate agents at The Justice Group. They have more than 18 years of experience serving the Guilford County, NC, area. They work with clients in both residential and investment real estate transactions. To list your property or to find your dream home, call (336) 324-5716 or visit them online to read more about their mission.