CONSUMER GUIDE: BUYER'S VS SELLER'S MARKETS R NATIONAL ASSOCIATION OF REALTORS® The real estate market constantly shifts, and knowing whether conditions favor buyers or sellers can help you make smarter, more confident decisions. Here's how to recognize which type of market you're in and what each means for you: What is a buyer's market? A buyer's market is when there are more homes for sale than there are people looking to purchase a home. With a greater selection of homes on the market and less competition, buyers typically have more time to shop, negotiate better terms, and may even see price reductions or other purchase incentives. What is a seller's market? In a seller's market, there are fewer homes available than there are buyers looking to purchase a home, creating a competitive environment where bidding wars and quick sales can be common. While sellers can often secure higher prices and more favorable contract terms, preparing the home properly and setting a strategic asking price at the outset are still key to attracting strong offers and ensuring a smooth closing. How can you tell which market you're in? The market type you are in is usually reflected through the pace of sales, how many homes are available, and how close the sale price of a home was to its listing price. In hot markets, homes may sell within days, often well above their asking price. In slower markets, listings stay active longer and require more negotiation. An agent who is a REALTOR® can advise you on these trends in your specific market and help you interpret how they affect your goals. What should buyers do in a seller's market? Buyers facing heavy competition should come prepared with a mortgage pre-approval letter, move quickly when a good listing appears, and make strong offers. Waiving contingencies or offering flexible closing terms can also help strengthen your offer. Especially in fast-moving markets, setting a firm budget and walkaway point beforehand helps to ensure you don't overextend yourself when the process gets competitive. When selecting a buyer's agent to help you, be sure to ask these ten questions to ensure you are working with the agent who is the best fit for your needs. What should sellers do in a buyer's market? When there are more homes than there are interested buyers, sellers should look to prioritize ways of making their property stand out. This could include competitive pricing, investing in curb appeal or staging, and being flexible on timelines or terms. While it may take longer to sell, a well- presented and appropriately priced home can still draw strong interest even when the overall pace of sales slows. Consider asking potential seller's agents these ten questions to better understand how they can help you maximize your home's appeal. Can market conditions change quickly? Yes-markets can quickly shift due to interest rate changes, job growth, seasonal trends, or shifts in consumer confidence. What was a seller's market last year could easily become more balanced, or even buyer-friendly, within months. Staying informed about local trends helps you better anticipate these changes and adjust your strategy accordingly. Should I wait for a better market? Trying to time the market perfectly can be difficult. In most cases, personal factorssuch as lifestyle changes, financial readiness, or long-term plans-are more important than short-term market fluctuations. If you're prepared, working with a trusted professional can help you navigate conditions as they are and make the best possible decision for your future. Practices may vary based on state and local law. Consult your real estate professional and/or an attorney for details about state law where you are purchasing a home. Please visit facts.realtor for more information and resources. CONSUMER GUIDE: THE APPRAISAL PROCESS If you are financing your home purchase, you will likely be required to get a home appraisal as one of the steps between signing and close. Here's what you should know: What is an appraisal? An appraisal is an opinion on a home's market value that helps a lender ensure the purchase price is in line with the property value. The process is KIFAR led by a licensed or certified residential appraiser-an independent third party engaged by the lender to provide a professional judgment on the home's value. Appraisers do not represent the buyer or seller; their sole duty is to come up with a fair and accurate valuation of the property. While all appraisers follow a set of standards, appraisers who are REALTORS® have the added commitment to uphold the REALTOR® Code of Ethics. Do I have to get an appraisal? If you are taking out a mortgage on your new home, your lender will usually require you to get an appraisal to help establish the "loan-to- value ("LTV") ratio," or the percentage of the home's price that you'll borrow. Higher LTV ratios are riskier investments for the lender, so generally they look for LTV ratios of 80% or less. If you are paying in cash, an appraisal isn't required, but it can still be useful to get a third-party opinion to make sure you aren't overpaying. In certain instances, the requirement for an appraisal may even be waived by either the lender or the buyer to make their offer more attractive to a seller. What does an appraiser look at? Different appraisers may take different approaches. By referencing databases such as Multiple Listing Services-online platforms that compile home listings in a given market-appraisers can use recently sold properties that have similar characteristics, called "comparables," to help come up with a reasonable value for your home. They will also look at the home's condition, recent renovations or improvements, amenities, location, size, and other characteristics. Whatever method an appraiser uses, it must be independent, un-biased, and backed up by evidence. Do appraisals take place in person? An appraisal may include an in-person visit, but it is not always required. In some instances, hybrid and desktop appraisals are used where appraisers collect data remotely and speak with reliable third-party sources familiar with the property and surrounding area, such as current or former agents of the comparables being considered. Is my agent allowed to communicate with the appraiser? Yes. Your agents and others involved in the transaction are allowed to communicate with the appraiser and provide property information. It is not only unethical, but it is also unlawful for agents to intimidate, persuade, or bribe an appraiser to influence the valuation, and an appraiser may not disclose confidential information at any time. What happens if the appraised value is different from the purchase price? A mismatch between a home's appraised value and the purchase price can impact how much your lender allows you to borrow for your mortgage. You can negotiate to include an appraisal contingency-a condition that the value and purchase price must align in order for the transaction to continue-in your purchase agreement, but an appraisal contingency is not required. Will I receive a copy of the appraisal? Yes. The Federal Equal Credit Opportunity Act requires lenders to automatically send you a free copy of home appraisals and all other written valuations on the property after they are completed. However, if you are granted an appraisal waiver by your lender, your lender is not required to send you a copy of the valuation report. Can I request that an appraiser correct or update the appraisal? If you believe the appraiser did not consider important information about the property or available comparables, you can request a reconsideration of value ("ROV") to ask that the appraiser reevaluate their analysis. Your lender will provide instructions on how to initiate an ROV, and your agent can help you gather the appropriate information to complete the request. If you believe an appraiser has reached an inaccurate or biased decision, you can also file a report with your state and federal regulatory agencies using the Appraisal Subcommittee's Appraisal Complaint National Hotline, or a local nonprofit fair housing organization (find by ZIP code here). Find support and other resources here. Practices may vary based on state and local law. Consult your real estate professional and/or an attorney for details about state law where you are purchasing a home. Please visit facts.realtor for more information and resources. REALTORS® are members of the National Association of REALTORS® Kankakee Iroquois Ford Association of Realtors www.kifarealtors.com Phone: (815) 937-5551 200 E. Court St., Kankakee, IL 60901 R NATIONAL ASSOCIATION OF REALTORS® REALTORS® are members of the National Association of REALTORS® ILLINOIS REALTORS® www.IllinoisRealtors.org CONSUMER GUIDE : BUYER'S VS SELLER'S MARKETS R NATIONAL ASSOCIATION OF REALTORS® The real estate market constantly shifts , and knowing whether conditions favor buyers or sellers can help you make smarter , more confident decisions . Here's how to recognize which type of market you're in and what each means for you : What is a buyer's market ? A buyer's market is when there are more homes for sale than there are people looking to purchase a home . With a greater selection of homes on the market and less competition , buyers typically have more time to shop , negotiate better terms , and may even see price reductions or other purchase incentives . What is a seller's market ? In a seller's market , there are fewer homes available than there are buyers looking to purchase a home , creating a competitive environment where bidding wars and quick sales can be common . While sellers can often secure higher prices and more favorable contract terms , preparing the home properly and setting a strategic asking price at the outset are still key to attracting strong offers and ensuring a smooth closing . How can you tell which market you're in ? The market type you are in is usually reflected through the pace of sales , how many homes are available , and how close the sale price of a home was to its listing price . In hot markets , homes may sell within days , often well above their asking price . In slower markets , listings stay active longer and require more negotiation . An agent who is a REALTOR® can advise you on these trends in your specific market and help you interpret how they affect your goals . What should buyers do in a seller's market ? Buyers facing heavy competition should come prepared with a mortgage pre - approval letter , move quickly when a good listing appears , and make strong offers . Waiving contingencies or offering flexible closing terms can also help strengthen your offer . Especially in fast - moving markets , setting a firm budget and walkaway point beforehand helps to ensure you don't overextend yourself when the process gets competitive . When selecting a buyer's agent to help you , be sure to ask these ten questions to ensure you are working with the agent who is the best fit for your needs . What should sellers do in a buyer's market ? When there are more homes than there are interested buyers , sellers should look to prioritize ways of making their property stand out . This could include competitive pricing , investing in curb appeal or staging , and being flexible on timelines or terms . While it may take longer to sell , a well- presented and appropriately priced home can still draw strong interest even when the overall pace of sales slows . Consider asking potential seller's agents these ten questions to better understand how they can help you maximize your home's appeal . Can market conditions change quickly ? Yes - markets can quickly shift due to interest rate changes , job growth , seasonal trends , or shifts in consumer confidence . What was a seller's market last year could easily become more balanced , or even buyer - friendly , within months . Staying informed about local trends helps you better anticipate these changes and adjust your strategy accordingly . Should I wait for a better market ? Trying to time the market perfectly can be difficult . In most cases , personal factors such as lifestyle changes , financial readiness , or long - term plans - are more important than short - term market fluctuations . If you're prepared , working with a trusted professional can help you navigate conditions as they are and make the best possible decision for your future . Practices may vary based on state and local law . Consult your real estate professional and / or an attorney for details about state law where you are purchasing a home . Please visit facts.realtor for more information and resources . CONSUMER GUIDE : THE APPRAISAL PROCESS If you are financing your home purchase , you will likely be required to get a home appraisal as one of the steps between signing and close . Here's what you should know : What is an appraisal ? An appraisal is an opinion on a home's market value that helps a lender ensure the purchase price is in line with the property value . The process is KIFAR led by a licensed or certified residential appraiser - an independent third party engaged by the lender to provide a professional judgment on the home's value . Appraisers do not represent the buyer or seller ; their sole duty is to come up with a fair and accurate valuation of the property . While all appraisers follow a set of standards , appraisers who are REALTORS® have the added commitment to uphold the REALTOR® Code of Ethics . Do I have to get an appraisal ? If you are taking out a mortgage on your new home , your lender will usually require you to get an appraisal to help establish the " loan - to- value ( " LTV " ) ratio , " or the percentage of the home's price that you'll borrow . Higher LTV ratios are riskier investments for the lender , so generally they look for LTV ratios of 80 % or less . If you are paying in cash , an appraisal isn't required , but it can still be useful to get a third - party opinion to make sure you aren't overpaying . In certain instances , the requirement for an appraisal may even be waived by either the lender or the buyer to make their offer more attractive to a seller . What does an appraiser look at ? Different appraisers may take different approaches . By referencing databases such as Multiple Listing Services - online platforms that compile home listings in a given market - appraisers can use recently sold properties that have similar characteristics , called " comparables , " to help come up with a reasonable value for your home . They will also look at the home's condition , recent renovations or improvements , amenities , location , size , and other characteristics . Whatever method an appraiser uses , it must be independent , un - biased , and backed up by evidence . Do appraisals take place in person ? An appraisal may include an in - person visit , but it is not always required . In some instances , hybrid and desktop appraisals are used where appraisers collect data remotely and speak with reliable third - party sources familiar with the property and surrounding area , such as current or former agents of the comparables being considered . Is my agent allowed to communicate with the appraiser ? Yes . Your agents and others involved in the transaction are allowed to communicate with the appraiser and provide property information . It is not only unethical , but it is also unlawful for agents to intimidate , persuade , or bribe an appraiser to influence the valuation , and an appraiser may not disclose confidential information at any time . What happens if the appraised value is different from the purchase price ? A mismatch between a home's appraised value and the purchase price can impact how much your lender allows you to borrow for your mortgage . You can negotiate to include an appraisal contingency - a condition that the value and purchase price must align in order for the transaction to continue - in your purchase agreement , but an appraisal contingency is not required . Will I receive a copy of the appraisal ? Yes . The Federal Equal Credit Opportunity Act requires lenders to automatically send you a free copy of home appraisals and all other written valuations on the property after they are completed . However , if you are granted an appraisal waiver by your lender , your lender is not required to send you a copy of the valuation report . Can I request that an appraiser correct or update the appraisal ? If you believe the appraiser did not consider important information about the property or available comparables , you can request a reconsideration of value ( " ROV " ) to ask that the appraiser reevaluate their analysis . Your lender will provide instructions on how to initiate an ROV , and your agent can help you gather the appropriate information to complete the request . If you believe an appraiser has reached an inaccurate or biased decision , you can also file a report with your state and federal regulatory agencies using the Appraisal Subcommittee's Appraisal Complaint National Hotline , or a local nonprofit fair housing organization ( find by ZIP code here ) . Find support and other resources here . Practices may vary based on state and local law . Consult your real estate professional and / or an attorney for details about state law where you are purchasing a home . Please visit facts.realtor for more information and resources . REALTORS® are members of the National Association of REALTORS® Kankakee Iroquois Ford Association of Realtors www.kifarealtors.com Phone : ( 815 ) 937-5551 200 E. Court St. , Kankakee , IL 60901 R NATIONAL ASSOCIATION OF REALTORS® REALTORS® are members of the National Association of REALTORS® ILLINOIS REALTORS® www.IllinoisRealtors.org