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When looking to buy a home, it is a good thing to know if this is a buyers’ market or a sellers’ market. Knowing this can help you make the offer most likely to be accepted by the seller without over paying. How do you determine this? Look up local statistics for your area. San Diego county statistics are available to the public.

Favoring The Buyer

Conventional wisdom tells us that if the average Days On Market (DOM) are 180 days or more, the market favors buyers. Most sellers will choose to remain in their home if they do not see a decent offer. So keep this in mind as you determine what to offer. Think beyond the money and see if you can offer them additional time in their current home before they must move out. This can be in the form of a longer escrow, more than the typical 30 days. It can also be in the form of a rent-back agreement while the seller is looking. Make sure you understand your lender’s requirements as to your required move-in date. Most loans require borrower occupancy within 60 days.

Neutral/Balanced

When the average Days On Market falls between 90 and 180 days, the market does not favor either the seller or the buyer. This means that both sides have to work out a meeting point. Usually this involves both sides having to give on some aspects to gain on other aspects of the transaction.

Favoring The Seller

When homes are going to escrow in 90 days or less, there is a seller’s market. Here the buyer needs to be prepared to meet the seller’s demands, within reason. There may be multiple offers and you will have to decide whether you want to take on a slightly bigger monthly payment to get the home in question. This is a personal decision which only the buyer(s) can make for themselves.

Happy home hunting!

Buying