Buyers Market Explained: What It Means, Examples, and How to Take Advantage

Yes. You can often include a “home sale contingency,” which means your purchase of the new home is dependent on you selling your current one. In a hot seller’s market, this is rarely accepted, but in a buyer market, sellers are often happy to take a “maybe” over no offer at all.

Not always, but they tend to stabilize or grow much more slowly. Instead of a price drop, you might see “hidden” value—like a seller leaving behind expensive appliances or paying for a one-year home warranty to sweeten the deal.

The most reliable indicator is “Months of Inventory.” If it would take more than six months to sell all the homes currently listed at the current sales pace, you are in a buyers market. Other signs include frequent price drops on listing sites and homes sitting “active” for more than 60 days.

While the market type (buyer vs. seller) doesn’t directly set interest rates, a buyer market often coincides with higher interest rates (which is what cooled the demand in the first place). However, you can use your leverage to ask the seller to pay “points” to buy your interest rate down, effectively giving you a lower rate than the market average.

No. While a crash involves a rapid and extreme drop in value, a buyer market is often just a natural softening of the market. It can be caused by rising interest rates, a sudden increase in new home construction, or local economic shifts that slow down migration to the area.

Real estate is hyper-local. You might find a buyer market in the high-end luxury suburbs where inventory is high, while the entry-level starter homes in the city center remain a seller’s market due to high demand for affordability.

Trying to time the absolute bottom is risky. In a buyers market, you already have the advantage of choice and leverage. If you find a home that fits your long-term needs and budget, the benefit of “winning” the right house usually outweighs the risk of missing a further 1% price dip.

In a seller-dominated market, you might waive inspections to get a deal. In a buyer market, the opposite is true. An example of a buys market tactic is asking the seller to repair every minor item found in the inspection report or requesting a “repair credit” at closing. Sellers are much more likely to say yes when they don’t have back-up offers waiting.

Getting too “greedy.” While you have the leverage in a buyer market, an insultingly low-ball offer can still offend a seller and cause them to shut down negotiations entirely. The goal is to get a great value, not to create an enemy.

Look for homes with a high DOM. If a house has been sitting for 90+ days in a buyer market, the seller is likely feeling “stale” and frustrated. This is your prime opportunity to submit an offer below the asking price.