I believe one of the most frequently asked questions of a Realtor is “How’s the market?  Is it a buyer’s market or a seller’s market?”  And I love the confused, almost deer-in-the-headlights look I get when I answer, “Yes it is”.

When people talk about the “market” they tend to talk in generalities and assume that this generality applies to all areas of the market, national, regional, state and local.  But the truth is generalities can be very misleading.  While national statistics may indicate the market is strong and favors sellers, that may not apply everywhere.  The market for a home in San Francisco is very different than the market in Monett, Missouri.  San Francisco may very well be a seller’s market but Monett may be a buyer’s market.  The supply and demand, which is the standard measure to gauge the health of the real estate market, differs greatly from one place to another.  And the same can be said about the market in a single state, metro area, city or town.

A newly developed community in an upscale area of town, or a trendy redevelopment of a previously depressed area, may bring top dollar and even bidding wars where another community located in the same town may struggle to find buyers.

It is these sub-markets that tell the true story of the market as it pertains to buyers and sellers.  And understanding these sub-markets is crucial when you want to buy or sell a home or investment property.   

For this reason, it is important to consult an experienced real estate professional before buying or selling to understand your market and where your subject property falls within it.