CHAPTER 8 When is the Price Right? Understanding Market Value and Timing There are times when we experience a “buyer’s market” and times when we find ourselves in a “seller’s market.” Before COVID-19, for instance, we were in a moderate buyer’s market. Homes were plentiful, with an average of over 2,000 homes on the market in our area. Buyers had options and could negotiate better deals. But when COVID hit, everything changed. The pandemic led to an extreme seller’s market, with almost no homes available. At one point, there were only 158 homes in our area on the market, a drastic drop from pre-pandemic numbers. This low inventory, combined with high demand, caused prices to surge, creating a highly competitive environment where homes often sold for more than the asking price. Buyer’s Market vs. Seller’s Market A buyer’s market occurs when there are more homes available than buyers. This means buyers have the upper hand — they have options and can negotiate lower prices. In contrast, a seller’s market happens when there are more buyers than homes available. In this situation, sellers can be more selective, and homes often sell quickly, sometimes without much effort. The Importance of Presentation in a Seller’s Market Even in a hot seller’s market, some homeowners may assume that they don’t need to prepare or market their home — that it will sell simply because it’s available. However, when inventory is
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