Knowing and understanding what market you are in at a particular point in time as a real property seller or buyer is crucial to your own success. Why? Because having the right knowledge will place you in an advantageous position thus enabling you to make informed decisions and choices based on real time data and information rather than guess work. It will also make you be ahead of the pack in terms of what specific strategies you will need to implement and apply in order to help you achieve your real estate investment goals whether that is to sell your own property as fast as possible or purchasing that ideal investment property of yours in record time.
SO, WHAT IS A BUYERS AND SELLERS MARKET?
Well, a buyers’ market is what you experience when there is more supply of real properties on the market than the demand can stomach. In other words, there are more sellers looking to sell their houses or properties than there are buyers looking to buy those same houses or properties. In a buyers’ market, sellers may have to accept lower prices than they would normally want to sell their properties for and may have to resort to providing sales incentives to buyers such as owner-seller financing and/or offer flexible terms and conditions to would be buyers in order to entice them to buy their properties. This market situation normally favors buyers in that it allows them to get better deals from respective sellers of property. And therefore, sellers may have to use a number of creative selling techniques in order to help them sale their properties as fast as possible or else end up not selling at all or may have to take quite a very long time indeed to sell their properties.
Whereas, a sellers’ market is the direct opposite of a buyers’ market. That is to say, the demand for real property is larger than the supply. People or buyers have more money to spend on real property, so sellers will often see several buyers competing to buy their properties which pushes up the prices of their properties as a result. This means that buyers will have to spend more money to get what they want. This situation is very ideal for sellers because they often get a very good price for their properties. And in such market situations, buyers will have to use and apply a combination of other creative buying techniques such as “Lemonading” for instance in order to entice sellers to sell them their properties on soft terms and conditions. I discuss in greater detail what “Lemondaing” is in this e-course here -> bit.ly/2yYJz0r if you wish to know what this is that is.
Moreover, aside from the above two discussed real estate market types, there are other three more basic real estate market types. And these are: Cyclical, Linear and Hybrid Markets.
Whereas, a sellers’ market is the direct opposite of a buyers’ market. That is to say, the demand for real property is larger than the supply. People or buyers have more money to spend on real property, so sellers will often see several buyers competing to buy their properties which pushes up the prices of their properties as a result. This means that buyers will have to spend more money to get what they want. This situation is very ideal for sellers because they often get a very good price for their properties. And in such market situations, buyers will have to use and apply a combination of other creative buying techniques such as “Lemonading” for instance in order to entice sellers to sell them their properties on soft terms and conditions. I discuss in greater detail what “Lemondaing” is in this e-course here -> bit.ly/2yYJz0r if you wish to know what this is that is.
Moreover, aside from the above two discussed real estate market types, there are other three more basic real estate market types. And these are: Cyclical, Linear and Hybrid Markets.
CYCLICAL MARKET
Cyclical markets are real estate markets that tend to have larger sales price moves – up and down – over the years that is. Property values in such markets tend to move up and down like a roller coaster ride with noticeable highs and lows in values in the long or short term periods. Local market cycle lengths may vary from market to market depending on local economic conditions in the economic cycle of a particular country or region.
LINEAR MARKET
Linear markets are real estate markets that tend to have a more flat-like growth curve over a period of time. That is to say, they have a smoother and stable growth rate with almost no significant and/or major highs or lows in property values, appreciation rates and/or sales prices. Linear markets are markets where booms and bursts virtually never happen. Linear markets are said to be somewhat “boring” markets by real estate investors because of their relatively low annual appreciation rates. However, these markets provide the best real estate investment climate in terms of what is known as “capitalization rates” and “cash-on-cash returns”!
HYBRID MARKET
And finally, hybrid markets are markets that tend to have a somewhat linear and slow growth characteristic for a period of time which is usually followed by periods of moderate cyclical style appreciation in property values and/or sales prices. They never boom or burst drastically like what happens in the cyclical markets and they also never need to correct like what happens in the more volatile markets as is the case in cyclical markets. In other words, hybrid markets are a combination of cyclical and linear type of markets.
CONCLUSION
.In conclusion, knowing and understanding what market you are operating in either as a seller or buyer is very crucial to your success. It will help you map out strategies you can use and apply when it comes to achieving your real estate investment goals. So, wise up and get to know and understand what market you are in at a particular point in time in the economic cycle. No market condition stays the same all the time. Market conditions change with time and therefore it is crucially important that you stay abreast with current local economic conditions at a particular point in time.
Not sure as to what market your local real estate market is in? Well, then get in touch so we can provide you with some current local economic indicators to help you ascertain as to which market you are currently in in your country!
So, until next time, go well in your real estate searching, buying and/or investment endeavors.
I love to hear your comments. Both positive and negative ones are all welcome.
So, go right ahead and drop a comment in the comment box below or simply Call / Sms +260 955 168754 for instant feedback!
NOTE: Looking for property to buy, rent or simply looking to sell your own property as quickly as possible and not sure as to what strategy to use and apply in order to help you sell your own piece of real property in record time? Well, then get in touch with David Kapalu – our Principal Agent - using the following contact details: +260 955 168754 / +260 966 388525 / +260 977 805045 or simply WHATS-APP him on: +260 966 388525 or alternatively visit this very Web-page by clicking HERE or see other current property listings on this Facebook Page Link here -> www.facebook.com/DavikRealEstateAgencyZambia
Not sure as to what market your local real estate market is in? Well, then get in touch so we can provide you with some current local economic indicators to help you ascertain as to which market you are currently in in your country!
So, until next time, go well in your real estate searching, buying and/or investment endeavors.
I love to hear your comments. Both positive and negative ones are all welcome.
So, go right ahead and drop a comment in the comment box below or simply Call / Sms +260 955 168754 for instant feedback!
NOTE: Looking for property to buy, rent or simply looking to sell your own property as quickly as possible and not sure as to what strategy to use and apply in order to help you sell your own piece of real property in record time? Well, then get in touch with David Kapalu – our Principal Agent - using the following contact details: +260 955 168754 / +260 966 388525 / +260 977 805045 or simply WHATS-APP him on: +260 966 388525 or alternatively visit this very Web-page by clicking HERE or see other current property listings on this Facebook Page Link here -> www.facebook.com/DavikRealEstateAgencyZambia
More About David Kapalu - The Author
David Kapalu is a Real Estate Investment Consultant who happens to be a duly Registered Member of the Zambian Institute of Estate Agents, an Internet Marketing Specialist, Motivational Speaker, Public Speaker, Life Coach, Crypto-Currency Investor and Enthusiast and Trainer. He is also a 4th Year Bachelor’s Degree Law Student Studying with the Zambian Open University. He is Someone who Understands his Subject so Well and Knows how to Reduce Complex Matters into Simple to Understand Matters.
Therefore, Call/WhatsApp/Sms him right now on +260 966 388525 and contract him for one on one real estate investment advice!
He also stands ready to be booked for speaking engagements as well as offer free and paid radio and television interviews with any individual or organization interested in him sharing his deep insight and understanding of real estate matters as well as offer legal advice pertaining to land rights and ownership in the Zambian Market Land Scape!
STILL Want to Know More about David Kapalu? Well, Then Go Here for Details -> bit.ly/2q7wldB.
Therefore, Call/WhatsApp/Sms him right now on +260 966 388525 and contract him for one on one real estate investment advice!
He also stands ready to be booked for speaking engagements as well as offer free and paid radio and television interviews with any individual or organization interested in him sharing his deep insight and understanding of real estate matters as well as offer legal advice pertaining to land rights and ownership in the Zambian Market Land Scape!
STILL Want to Know More about David Kapalu? Well, Then Go Here for Details -> bit.ly/2q7wldB.
