Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Finance » Investing » Article

The True Story About a Seller's Market

By Tony Seruga, Yolanda Seruga and Yolanda Bishop

It is good advice to purchase property during a buyer's market and sell property in a seller's market. This is quite obvious simply by the description of the terms. However, what attributes should you look for to determine if it is a seller's market or buyer's market in both the residential and commercial real estate industries.

So we know what these terms describe, but what about the true characteristics of a buyer's and seller's market? Does it differ from residential and commercial real estate? Let's look at these descriptions and what they really mean and how you can assess the market yourself and not have to rely on what the general public is talking about that specific day.

Commercial real estate is a special case where the market cycle changes from city to city. And no matter what point in the cycle a city is experiencing, an investor with a specific investment strategy can find value within that specific market. That is a definite benefit of commercial real estate. You can always find value in commercial properties.

This is because there are so many different types of properties: development, building, rehab etc. Depending on your investment strategy and what you are looking for in a market, the terms buyer's market and seller's market do not hold as much value as the term "hot market." A hot market is one where the purchase values are low and the return on investment is high. There is a lot of commercial real estate activity, a high population growth rate, and a growth strategy within the city. Then again, what one investor feels is a hot market is not a hot market to another investor.

Instead of using supply and demand, I prefer to describe these markets through power. Who has the power to call the shots- the purchase price for property.

With a buyer's market, the buyer has the power to dictate the purchase price. There are so many properties for sell, so many sellers, and not enough buyers for those properties. So if a seller really wants to part with his or her property, they are almost fighting over who is going to purchase the property.

The buyers are going to naturally ask for a lower price because the seller will need to come down in price to sell the property. They could try to hold out for a buyer who will pay them more. However, a buyer could simply move to another similar property that could cover their needs just fine, at a lower price. So with a buyer's market, they have the power to name the price and the seller's must succumb because otherwise, they won't be able to sell the property. That is how the prices are driven lower.

The opposite is true of a seller's market. In a seller's market the sellers have the power; they have the power to dictate the price. There are far more buyers than sellers so there is a limited supply of properties. The sellers can easily raise their prices because the buyers will have to pay more than the next buyer if they truly want o purchase a property. So prices in the market are driven higher as the sellers know they can get these prices.

So the type of market it is really has to do with power- who can call the price for a property. In the residential real estate markets, the type of market at a certain point in time is easy to determine. Are the housing prices rising or falling?

Whether you are a buyer, a seller or an investor, at any point in time the market can be at your advantage. Follow real estate trends and pay attention to the signs of a market that fits your situation. Are prices rising? Lowering? Stagnant? Where is the market going to move next? By understanding your market you can make the proper decision on whether or not to buy or sell.
About the Author
Specializing in commercial and investment real estate, Tony Seruga, Yolanda Seruga and Yolanda Bishop are always searching for new and profitable commercial properties across the U.S. Visit for more great information.

Article Source:
If you wish to add the above article to your website or newsletters then please include the "Article Source:" as shown above and make it hyperlinked.

  Some other articles by Tony Seruga, Yolanda Seruga and Yolanda Bishop
Let Your Title Company Get the Facts About Your Commercial Real Estate Purchase
With so many elements of risk within the commercial real estate industry, it is a smart idea to protect yourself ...

How to Use Direct Marketing in Your Commercial Real Estate Brokerage
Real estate has been increasingly popular. There seems to be a new agent getting their real estate license left and right- especially ...

How the Theory of Constraints Can Uncover the Missing Link in Your Investment Strategy
Unless you have a working corporation with employees, outsourcers, systematized operations, rules and regulations, you probably do not run your commercial real estate investing as a true business. Sure you have strategies and ways you like ...

  Recent Articles
Making an offer on an Irish Property
by Clint Jhonson

How To Search California State Tax Lien Records
by Zach Parker

Buying a House at Auction is Very Good Investment
by Kotia Kot

The Future of Gaming is here, why the Video Game industry is reaching new highs.
by Jonel Cordero

All The Relevant Details About Remortgage Quotes Uk
by Turk Malloy

How Investment Property Helps You Retire Early
by Marian Rozwenc, PhD

How To Overcome The Hidden Perils Of Discount Online Stock Trading
by David Jenyns

Advantages of Long Term Investing and Compounding Interest
by Ohad Livne

When And When Not To Use A Stop
by Larry Potter

Passive Investing - How To Grow $250.00 to $250,000.00
by Gil Washington

Notary surety bonds preventing failure
by rick martin

Online Trading India - Investment at Kotak Securities!
by Tanya Lobo

Shanghi Shows Signs of Gold Boom in 2007
by John Christensen

Covered Call Trading Exit Strategies the Pain of STOP Orders
by Mat Merten

"Gold, a Hedge Against the Perils of Uncertain Times."
by John Christensen