Prices in Real Estate rise and fall for the same reason the price of any commodity rises and falls. The primary rule of economic is supply and demand. It is these two variables that drive the housing market.
How many houses are available and how many people want to buy them? This simple equation creates a variety of market conditions. While a seasoned Real Estate Agent can help you sort through the markets, it is a good idea to understand what they are telling you when you talk about market conditions.
There three basic markets in real estate. You will see all three from time to time if you GOOGLE Real Estate Phoenix AZ.
The most tame housing market is the Balanced Market. In a balanced market, supply meets demand over a few month period. There are Real Estate industry calculations that an agent may perform to determine the type of market you are working in. For the buyer we can say, houses go on the market at a reasonable price. They sell at a reasonable price. For Sellers, they make a reasonable profit, and sell in a reasonable amount of time.
In such a market a Realtor can save a buyer a few dollars by looking at comps and bargaining over shortcoming of the property. They can benefit the seller by defending the asking price based on comps and other trends a seller may not be aware of. The Balanced Market in conducive to a little more wheeling and dealing than the other two markets.
For the past few years, Phoenix has been one of the fastest growing cities in America. With growth comes DEMAND. Demand for homes tends to drive prices up. In some cases there are so few properties, competition between buyers causes bidding wars to drive up the price of a particular home. Seeing this, other sellers inflate their price. This is a difficult situation for a buyer. A good Agent is your best friend in such a market. Rather than GOOGLEing Real Estate Phoenix AZ, a good Realtor knows the markets. They can help you navigate such treacherous markets.
This is the home buyer’s dream scenario. An over SUPPLY of homes drags prices down. A Real Estate agent can potentially save the buyer even more by bargaining price down based on comps and any mechanical issues. Sellers need a Realtor to make the best of their circumstance. The agent can point out home’s positive attributes and maximize the chances for profit.
Buying and Selling
In a market like Phoenix, buying or selling a home on your own is probably not a wise business decision. An agent like Angelo Sbrocca at www.LetMeEarnIt.com can save you a lot of headaches and even some money. Don’t Google Real Estate Phoenix AZ and stumble your way through a sale. Do it the right way, with a Real Estate Agent that knows the markets.