As a Realtor, one of the first things to note is how you and your buyers are faring in the local market. While it is possible to find a market in the perfect balance, more often than not, you will find yourself in either a buyer’s market, where buyers have the upper hand or a seller’s market, which favors you.

The Arizona Real Estate Market has two opposing sides and understanding these sides can help improve your strategies, make your efforts more successful and close your deals faster.

This article examines the two major types of markets in Arizona real estate, the signs, characteristics, and navigation of the markets, as well as their differences. So, without further ado, let’s get started.

First, What Is a Buyer’s Market?

Typically, a buyer’s market occurs when housing supply exceeds demand. In a buyer’s market, there are usually more homes for sale than potential buyers, and prices tend to decrease because there is less competition, favoring the buyers more than the sellers.

The buyer’s market gives buyers leverage over sellers because the market is forced to respond when there is a higher supply and a lower demand for homes. Furthermore, in a buyer’s market, real estate prices decrease, and homes linger on the market for an extended period.

How to Navigate a Buyer’s Market

Considering the market side you face, consider these tips for crafting a strategy in a buyer’s market.

If you are a seller:

  1. Delay your listings until the market shifts.
  2. Seek help from a real estate agent to provide you with potential upgrades that might deliver a massive return on your investment.
  • Hire a home staging service to make your home stand out.
  1. Think about the best time to sell.

If you are a buyer:

  1. Offer less than the asking prices and ask for seller concessions.
  2. Take your time to explore various listings since there isn’t much competition.
  • Ensure to research comparable properties to know how to make the right offer.

Now that you know what a buyer’s market is, the signs, and its mode of navigation, let’s list its characteristics.

Pros of a Buyer’s Market

  1. Better Prices for Buyers: This is the most obvious benefit of a buyer’s market. There are always numerous houses for sale, so sellers tend to reduce their prices, making it easy for buyers.
  2. Availability of Builder Incentives: Homes sold during a buyer’s market usually come with free upgrades or other fees that come with a home purchase and other incentives related to property taxes.

Cons of a Buyer’s Market

  1. Difficulties Selling Your Homes: You may find it hard to sell your homes during a buyer’s market due to the availability of plenty of houses.
  2. Worrying About Carrying 2 Mortgages: In a buyer’s market, there is no guarantee of a quick sale on your current home, and you may need to hold onto a first mortgage longer than you have.

What is a Seller’s Market?

A seller’s market is the opposite of a buyer’s market. It arises when the housing demand exceeds the supply. In a seller’s market, there are fewer homes for sale than buyers, and these homes usually sell faster as buyers often compete with each other to score a property.

In addition, due to the housing shortage, home prices tend to increase, making buyers rarely have the power to negotiate and are more willing to buy the properties. Also, homes tend to stay on the market for a shorter period, making it easier for sellers to close and move on.

How to Navigate a Seller’s Market

A seller’s market may be overwhelming for buyers and perhaps a bit tempting for sellers. To make a deal that works for you, follow these steps.

If you are a seller:

  1. Ensure your prices are reasonable and don’t get too greedy so you don’t drive potential customers away.
  2. Highlight the competitive advantages of your homes, and check if what else is on the market is related to your price range before listing your home.
  • Do a pre-inspection. This extra step theoretically allows your home to sail through the appraisal and inspection process once an interested buyer arrives.

If you are a buyer:

  1. Consider holding off until the market is highly favorable for you.
  2. Get prequalified for your mortgage. It gives sellers more confidence in your offer.
  • Be aware that your seller mostly agrees to a loan based on the property’s appraised value.
  1. Reduce your contingencies as they may be unattractive to sellers.

Pros of a Seller’s Market

  1. Favorable Negotiation Position When Selling: Sellers tend to negotiate better in a seller’s market. They might not be easily pressured to give in to their buyer’s demands.
  2. Quicker Home Sales: In the seller’s market, homes are not always available in the market for a more extended period. This is good news for those trying to time the sale of their home by moving into a new home.
  • Higher Home Prices: A seller without a lot of competition can usually demand higher prices for their homes.

Differences between a Buyer’s Market and a Seller’s Market

A buyer’s market usually occurs when home buyers have more negotiating power than home sellers. Many factors indicate whether we are in a buyer’s market; one of the many factors is the month’s supply of inventory (MSI).

A seller’s market occurs when home sellers have more negotiating power than prospective buyers. For example, a seller’s market may feel there are not enough homes to go around, or there is nothing to choose from.

The table below further summarizes the differences between a buyer’s and a seller’s market:

Buyer’s Market Seller’s Market
More homes are usually available to potential customers in a buyer’s market. There are usually fewer homes available to customers.
Home prices tend to reduce when a buyer’s market occurs because of less competition. There is always competition for the few homes among buyers, thereby causing an increase in home prices.
An economic downturn, high crime rates, overbuilding, and many more are usually the potential causes of a buyer’s market. Low-interest rates on mortgages, development limits imposed by local job markets, etc., cause a seller’s market occurrence.

Frequently Asked Questions about Arizona’s Buyer’s and Seller’s Real Estate Markets

Can a Realtor Represent Both Buyer and Seller in Arizona?

Due to the Disclosed Dual Agency practice in Arizona, a realtor or a broker can act as a buyer and seller in the same real estate transaction.

Is It Safe to Use Arizona Realtors to Buy a New Home?

Yes, it is safe. Agents are usually valuable when directing the progress of newly constructed Arizona Homes that match your needs and necessities.

Do you need a credible agent to help you throughout the process? Consider reaching out to Kelly Clauss, a real estate agent in Arizona with more than 17 years of experience. She’s mostly centered in the east valley and can be your best go-to person for houses around Gilbert, Tempe, Chandler, Phoenix, etc.

Is an Arizona Realtor Commission Negotiable?

Yes, it is. Arizona Realtors often charge 4% to 8% on average for complete services rendered, but the charges may increase to cover additional time and expenses needed to sell Arizona Homes.


Knowing where the market stands is essential when buying or selling a property. As a buyer, you will likely purchase a home in a buyer’s market, as there will be an influx of available homes and lesser competition. Also, as a seller, you will be hoping to list your homes during a seller’s market since there are fewer properties for sale and a significant number of interested buyers.

With this article, I believe you now understand the buyer and seller market concept in the Arizona Real Estate Markets, their signs, pros and cons, and how to craft a strategy when you are on both market sides.

Should you have further questions or thoughts? Reach out to Kelly Clauss today!

With so much on the line, experience matters.

Whether you’re buying, investing or selling, having someone with the experience, personality and skills to always advocate for your best interests is important. You’ve worked hard to get here. You deserve to work with someone who will work just as hard for you.