Hot Market -

This is an extremely competitive market, one that is advantageous to the

seller. Sometimes, homes will sell as soon as they are listed or even before

homes are listed. Typically, during a hot market, multiple offers will be made

on each home and more often than not, homes will sell for more than their

asking price. It is even more crucial to be prepared and to be ready as a

buyer when the market is hot. It can be easy to get caught up in the bid for a

home, but if you are prepared (pre-approved, solid in price range, realistic

about your needs), it is easier to remain focused on your housing needs and

price range.

Normal Market -

In a normal market, there is fairly a large number of homes available and an

average number of buyers. This market does not necessarily favor the buyer

or the seller. A seller may not have as many offers on their home, but he or

she may not be desperate to sell either. Again, it is the buyer's responsibility

to be prepared. During a normal market, the chances to negotiate are higher

than in a hot market. As a buyer, you can expect to make offers at lower than

the asking price and negotiate a price at least somewhat less than what the

sellers are asking.

Cold Market -

In a cold market, houses may be listed for more than a year and the prices of

houses listed may drop considerably. This market is advantageous to the

buyer. As a buyer, you have the time to make an offer that works to your best

interest. It is not uncommon to low-ball and to find that sellers are

accommodating to meet your needs. Keep in mind that even though this

market is a great time for buyers, you do not want to lose your dream home

by being unrealistic. Your goal is to get your dream home at the best

possible price.