What defines a buyer’s market?
A buyer’s market occurs when there are more homes for sale than buyers actively looking. Typically, that’s reflected in more than six months of housing supply. Properties take longer to sell, sellers are more motivated, and price reductions are more common. In Boston, true buyer’s markets are rare, but they can happen in specific neighborhoods, property types (such as luxury condos), or economic cycles when interest rates or job markets cool buyer demand.
What does this mean if you’re ready to buy now?
For you as a buyer, a market that favors you translates into tangible benefits:
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Negotiating power: Sellers may be more willing to reduce prices, cover closing costs, or agree to repairs after inspection.
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Time to decide: Instead of rushing to beat multiple offers, you may have more time to compare properties in more depth.
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More choices: With higher inventory, you’re less likely to have to make as many compromises on location, layout, or amenities.
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Long-term advantage: Historically, buyers who purchase in softer markets benefit from appreciation when conditions swing back toward sellers.
That said, in a buyer’s market, don't expect you'll get a deal. Some homes may be overpriced or need extensive work. Being educated on market values so that you can discern market value, and value to you as a buyer, becomes critical.
How to best position yourself as a buyer
To make the most of favorable conditions, preparation is key:
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Secure financing first: A pre-approval letter signals strength and allows you to act quickly on the right property and focus your search realistically. If you're able to purchase without financing or a financing contingency, you're in an even better position.
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Study the market: Understanding recent comparable sales, neighborhood trends, days-on-market stats, and other market dynamics, helps you identify when a home is fairly priced or has room for negotiation.
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Work with the right advisor: An experienced agent can spot patterns and opportunities, and help find your best leverage points.
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Think beyond price: Negotiate for other terms: more favorable inspection, P&S, financing, and closing timelines, use and occupancy post closing, and more. These details can make a difference in the overall outcome.
In a buyer’s market, you’re not just shopping for a home, you’re shaping the terms of your investment. With the right strategy, you can secure the property you love under conditions that set you up for long-term success.
Curious about how to make the most of a market that favors buyers? Reach out today to explore the opportunities available in Greater Boston. Together, we’ll create a buying plan that aligns with your goals and secures the home that’s truly right for you. Get in touch via email [email protected] or on social media.
