For a while the real estate market has been going up, up, up like a hot air balloon and nobody knew when it would bust. Of course, sellers loved this because they sold their homes quicker and for higher prices than they originally paid. Sometimes making a pretty penny, too. However, the real estate climate is changing somewhat and now it seems it is a buyer's market instead of a seller's market. So, how does this change things? Or does it? The answer is a resounding yes. A buyer's market impacts the buyers in a more positive light than the sellers.

What Happens in a Buyers Market?

A buyer's market is characterized by an excess of homes on the market with prices that are flat and sellers who are desperate to unload. In real estate market conditions such as these buyers are better able to find the home they want and buy it for a price than can afford. In fact, they are more than likely to buy more home for their money in a buyer's market.

So, when should a buyer make an offer on a home? The best time is during a buyer's market, obviously, when the buyer has more control over the price of the home and what home they want to buy. In a buyer's market there are more homes on the market so bidding wars don't really occur and prices are lower on homes because the seller wants to sell and with few offers the buyer can make a lower offer and still make the purchase.

But, how does a potential buyer know what price to offer in a buyer's market? The answer is always lower than the asking price. Then, negotiations can begin. Frequently in a seller's market buyers have no time to negotiate and must buy for the asking price or even offer more to buy the home. This is not the case in a buyer's market when the buyer can do the research, compare homes and prices, and make a low offer to begin the negotiations.

This is the best time to buy a home. However, the real estate market conditions have been a seller's market for the past decade, so at some point the bubble had to pop and give buyer's a chance at the market once again.