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Hot Market -
This is an
extremely competitive market, one that is advantageous to the seller.
Sometimes, homes will sell as soon as they are listed or even before homes
are listed. Typically, during a hot market, multiple offers will be made
on each home and more often than not, homes will sell for more than their
asking price. It is even more crucial to be prepared and to be ready as a
buyer when the market is hot. It can be easy to get caught up in the bid
for a home, but if you are prepared (pre-approved, solid in price range,
realistic about your needs), it is easier to remain focused on your
housing needs and price range.
Normal Market -
In a normal
market, there is fairly a large number of homes available and an average
number of buyers. This market does not necessarily favor the buyer or the
seller. A seller may not have as many offers on their home, but he or she
may not be desperate to sell either. Again, it is the buyer's
responsibility to be prepared. During a normal market, the chances to
negotiate are higher than in a hot market. As a buyer, you can expect to
make offers at lower than the asking price and negotiate a price at least
somewhat less than what the sellers are asking.
Cold Market -
In a cold market, houses may be listed for more than a year and
the prices of houses listed may drop considerably. This market is
advantageous to the buyer. As a buyer, you have the time to make an offer
that works to your best interest. It is not uncommon to low-ball and to
find that sellers are accommodating to meet your needs. Keep in mind that
even though this market is a great time for buyers, you do not want to
lose your dream home by being unrealistic. Your goal is to get the your
dream home at the best possible price.
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