The real estate market in Buffalo is constantly changing, and it’s important to understand the differences between a buyer’s market and a seller’s market. In a buyer’s market, there are more homes for sale than there are buyers, which means that buyers have more negotiating power. In a seller’s market, there are more buyers than there are homes for sale, which means that sellers have more negotiating power. In this blog post, we’ll cover five key differences between a buyer’s market and a seller’s market and what it means for you as a home buyer or seller.
If you’ve been following the real estate market in Buffalo, you’ve probably heard the terms “buyer’s market” and “seller’s market.” These phrases get thrown around a lot—but what do they actually mean?
Understanding which market you’re in can make a huge difference in how you buy, sell, or invest in real estate. Let’s break down the five key differences between a buyer’s and seller’s market—and how each one impacts your next move.
1. Inventory Levels
One of the biggest differences between a buyer’s market and a seller’s market is inventory levels. In a buyer’s market, there are more homes for sale than there are buyers, which means that there is a surplus of inventory. This can lead to lower prices and more negotiating power for buyers. In a seller’s market, there are more buyers than there are homes for sale, which means that there is a shortage of inventory. This can lead to higher prices and less negotiating power for buyers.
For sellers, a buyer’s market means that there is more competition, which can make it harder to sell their home. In a seller’s market, there is less competition, which can make it easier to sell their home.
The difference:
- In a buyer’s market, there are more homes for sale than there are buyers.
- In a seller’s market, there are fewer homes available, and demand exceeds supply.
What it means for you:
If you’re a buyer, more inventory means more choices, more negotiating power, and less pressure to rush a decision.
If you’re a seller, limited inventory in Buffalo gives you an advantage—you can often command top dollar and face less competition.
2. Days on Market
Days on market is the amount of time that a home is listed for sale before it is sold. In a buyer’s market, homes tend to stay on the market longer because there are fewer buyers. This can lead to more negotiating power for buyers, as sellers may be more willing to accept lower offers. In a seller’s market, homes tend to sell more quickly because there are more buyers. This can lead to less negotiating power for buyers, as sellers may receive multiple offers and be able to choose the best one.
For sellers, a longer days on market can be frustrating and may lead to lower offers. In a seller’s market, a shorter days on market can lead to higher offers and a quicker sale.
The difference:
- In a buyer’s market, homes stay on the market longer because there are more options and less urgency.
- In a seller’s market, listings move fast, sometimes with multiple offers within 24–48 hours.
What it means for you:
If you’re buying in a fast-moving market, you’ll need to act decisively and have your financing ready.
If you’re selling, be prepared for a quick turnaround—staging, pricing, and marketing must all be on point from day one.
3. Price
Price is another key difference between a buyer’s market and a seller’s market. In a buyer’s market, prices tend to be lower because there is more competition among sellers. In a seller’s market, prices tend to be higher because there is more competition among buyers.
For buyers, a buyer’s market means that they may be able to find a home at a lower price. In a seller’s market, buyers may need to be prepared to pay more for a home. For sellers, a buyer’s market means that they may need to lower their asking price to attract buyers. In a seller’s market, sellers may be able to ask for a higher price and receive multiple offers.
The difference:
- In a buyer’s market, home prices tend to stabilize or drop slightly as sellers compete for attention.
- In a seller’s market, prices usually rise due to bidding wars and limited supply.
What it means for you:
Buyers in a cooling market can negotiate repairs, credits, and even price reductions.
Sellers in a hot Buffalo market can often sell at—or above—asking price, sometimes within days of listing.
4. Negotiating Power
Negotiating power is the ability to negotiate a better deal. In a buyer’s market, buyers have more negotiating power because there are more homes for sale than there are buyers. This means that sellers may be more willing to accept lower offers or make concessions, such as paying for closing costs or making repairs. In a seller’s market, sellers have more negotiating power because there are more buyers than there are homes for sale. This means that buyers may need to make higher offers or be willing to make concessions to win a bidding war.
For buyers, a buyer’s market means that they have more negotiating power and may be able to get a better deal. In a seller’s market, buyers may need to be prepared to make higher offers or make concessions to win a bidding war. For sellers, a buyer’s market means that they may need to be more flexible and willing to make concessions to attract buyers. In a seller’s market, sellers have more negotiating power and may be able to receive higher offers.
5. Market Conditions
Market conditions refer to the overall state of the real estate market. In a buyer’s market, the market conditions are favorable for buyers because there are more homes for sale than there are buyers. In a seller’s market, the market conditions are favorable for sellers because there are more buyers than there are homes for sale.
For buyers, understanding the market conditions can help them make informed decisions about when to buy a home and how much to offer. In a buyer’s market, buyers may be able to take their time and find a home at a lower price. In a seller’s market, buyers may need to act quickly and be prepared to pay more for a home. For sellers, understanding the market conditions can help them price their home appropriately and attract buyers. In a buyer’s market, sellers may need to lower their asking price to attract buyers. In a seller’s market, sellers may be able to ask for a higher price and receive multiple offers.
Understanding the differences between a buyer’s market and a seller’s market is important for both home buyers and sellers. No matter which side of the fence you’re on, you’ll want to make informed decisions about when to buy or sell a home and how much to offer or ask for. Whether you’re a buyer or a seller, working with an experienced real estate agent can help you navigate the market and achieve your real estate goals. Give us a call today for assistance with all of your real estate needs! 716-403-2016