Different types of Real Estate markets

When buying a home there are different types of Real Estate markets to think about. And, according to the market conditions you can ask your Real Estate Agent about the kind of negotiation strategy  he would use. Negotiation strategies are mostly based on the market conditions, on the home you want to buy and on the seller’s needs.
There are, almost always and basically, three types of markets: “buyers’ market”, “sellers’ market” and “balanced market”.  And, between them it may appear an additonal market uaually called “bidding war”. When negotiating in a buyers’ market, you have more chances on your side than in any other market. Why? Just because there are a big inventory of homes for sale than buyers making offers. Sellers can’t let buyers go away from them and usually sell the home at a lesser price than the asked one. Your Real Estate Agent will know what the seller’s motivations are to sell the property and will work the negotiation accordingly.
When negotiating in a sellers’ market you must try to keep the home busying process as smoothly as possible. Although you are the one having the money to purchase the property, there are some seller issues that are not totally on your side. They usually don’t spend time negotiating. Your Real Estate Agent will guide you properly to get pre-approved for a loan and will help you protect yourself by asking for some standard contingencies such as home inspection, appraisal and financing.
When negotiating in a balanced market, both the buyer and the seller may agree to do a 50-50 split of their disparities on personal property, home price and terms. Why? Just because in this type of market there is no exist a pressure by the parties or personal priorities to buy the home or sell the property, so this is when the counteroffer stages begin. Your Real Estate Agent will guide you to offer a lesser price than the asked one. Your Agent will ask you to include home inspection and financing contingencies by writing as well as for some personal property you may want.