- When market conditions favour the seller. A seller's market can arise from a low level of supply, a high level of demand, or a combination of the two. As it relates to real estate, the occurrence of a seller's market usually means that the seller can expect for their home to sell quickly at or above market value.
profitable, seller's advantage, easily sold
Related Terms and Acronyms
- Appraised Value — Definition,
- An educated opinion of how much a property is worth.
- Bear Market — Definition,
- When stock prices are decreasing, it's a bear market.
- Bull Market — Definition,
- When stock prices are increasing and it's a healthy market, this is known as a bull market.
- Buyer's Market — Definition,
- When market conditions favour the buyer.
- Current Market Value (CMV) — Acronym,
- The estimated price determined by the recent sale of similar properties.
- Fair Market Value (FMV) — Acronym, Very Important,
- The highest price that a buyer would pay for a property and the lowest price a seller is willing to accept.
- Low Ball Offer — Definition,
- A way-below-market bid a buyer makes on a property or item.
- Market Conditions — Definition,
- Factors that affect the sales of homes in an area, such as interest rates, the unemployment rate, home appreciation, weather and time of year.
- Market Value (MV) — Acronym, Important,
- Also known as "Fair Market Value." The estimated value of a property which a seller could expect to receive under normal conditions.
- Motivated Buyer — Definition,
- A prospective buyer who has a strong reason to buy, and quickly.
- Motivated Seller — Definition,
- A home seller who has a strong reason to sell quickly, possibly because of an upcoming relocation or an impending default on a loan.
- Principle of Conformity — Definition,
- The notion that a house will fetch a fair price if it is situated among houses of similar size, style and condition.
- Principle of Progression — Definition,
- The notion that a smaller house's value will be enhanced if it is near larger, fancier houses.
- Principle of Regression — Definition,
- The notion that the value of a larger or fancier house will be reduced if it is near smaller, lower-priced houses.
- Property Value — Definition,
- The worth of a piece of real estate, based on the price a buyer and seller would negotiate.
- Publicly Traded Company — Definition,
- A company that is sold on a stock exchange.
- Real Estate (RE) — Acronym, Very Important,
- A section of land including all the natural resources (above and below the surface) and any permanent buildings or structures located on it. Also known as "realty."
- Resale Value — Definition,
- The sales price that would be negotiated by a willing seller and buyer for an existing home or property.
- Secondary Market — Definition,
- A market where financial instruments such as stocks, bonds, options and futures are bought and sold to investors.
- Security — Definition,
- A tradable financial implement that represents ownership, the rights to ownership or debt.
- Property designated as collateral.
- A document stating ownership of a stock or bond.
- Stock — Definition,
- A share of the ownership of a company.