RV Buyer vs RV Seller Market: How the Difference Can Affect Your Situation

Learning the ins and outs of the RV market can be beneficial to everyone looking to sell or purchase a rig. This article will highlight the information needed to make a sound decision before buying or selling.

First things first. RV markets are broken into two categories: Buyer’s Market and Seller’s Market

Details of a Buyer’s Market

‘It’s a buyer’s market’ is a term that refers to a RV market that consists of more RVs for sale than customers looking to buy. Basically speaking, it means the time is right to make that big ticket purchase. This situation provides ‘perfect weather conditions’ for buyers, meaning they can often negotiate down prices from the sticker price. With the more supply sellers have on hand, the longer some units might sit in the lot. Many sellers will lower the sticker prices after a certain amount of time, allowing the buyer to get a better deal without having the hassle of playing the numbers game with the seller. Everyone loves a sale and a buyer’s market is often the reason for decreased sale prices.

In a buyers market, sellers have to compete with multiple units for sale. This can influence pricing and sales times. 

Signs of a Buyer’s Market

• Low interest rates
• Dropping prices of RV units
• Numerous RVs up for sale
• Units remaining for sale for extended periods of time
• Sellers are open to negotiations regarding pricing
• Fewer buyers shopping for RVs

Actions to Take in a Buyer’s Market

For Buyers

To strike while the iron is hot is the perfect saying for those looking to buy. The buyer has the lead in haggling out a good price without worrying about a bidding war with another buyer. Within this RV market that favors buyers, it is likely to experience a quicker sale process, as well as an easier experience.

Some tips for buyers to keep in mind:

• Look for units that have been up for sale for a month or two. Also, be on the lookout for units that have a discounted price sticker. Sellers with RVs recently put up for sale usually will stand firm in the asking price, so spending some time searching for a longer-listed unit would be best.
• With the market in your favor, you can be a bit more aggressive in your negotiations. And remember, with many rigs available within the buyer’s market, there isn’t a shortest of the ‘must have’ model. If one seller won’t reach the price you want, there will be another ‘must have’ model just around the corner. Don’t be afraid to walk away. Used as a tactic, it might cause the seller to stop you before you reach your car.

 For Sellers

While it isn’t ideal selling during a buyer’s market, it does call for some imagination and creativity. Remember the adage, you’ve got to spend money to make money. That is very true in this sort of situation.

Tips for sellers include:

• Installing upgrades to your RV, such as new appliances and newly released technology items. Doorbell cameras, exterior lighting options, and other similar gadgets are incentives for buyers. The key is to make your RV unit stand out from the crowd.
• Remove all personal items and anything that ‘crowds’ the floor or counter space within the RV. Giving the buyers a clear picture of what the rig looks like will allow them to visualize how they will finetune the interior.
• To increase the final sales price, investing money into new tires and/or making repairs needed will help the process. If the rig is for sale with no additional costs needed, it will help entice a buyer or two.
  

  Details of A Seller’s Market

  The seller’s market is an ideal market for selling your RV but keep that confidence within check. Buyers are going to be even more eagle-eyed, ensuring they get their dollars’ worth. The good news is that you are in the creative driver’s seat and if you don’t get carried away by over pricing, a profit will be your reward.

Here’s some tips for those looking to buy during a seller’s market:

• Keep an open mind. With limited RV units available during this period, it may not be possible to land the perfect RV at the perfect price. Being flexible to give up on some ‘must have’ extras and opting for an older model year or cheaper model will keep you from having tunnel vision.
• Getting pre-approved for a loan will save you some time. Knowing your budget and sales price ahead of time will help you narrow down your options before the search begins.
• Be friendly. Really, you would be surprised at how far a smile would go. Showing you are approachable and a ‘people person’ might accidently help during negotiations. At the very least, smiles are contagious.

Sellers, keep these suggestions handy:

• The same suggestions for you that are posted above are appropriate here as well. But there is one variable: the seller now has the upper hand.
• While there is money to be made in a seller’s RV market, don’t get too carried away with upping the price. Smart buyers will see through the tactic, and many will not purchase anything before they make an overly pricey purchase.
• On the flip side, it is quite possible there will be more than one interested party looking to score the keys from you. Keep your price competitive and don’t be afraid to provide a counteroffer during negotiations.

When inventory lacks buyers’ demand, prices hold steady and sellers of their RVs are happy with sales times and prices. 

What it all boils down to power and timing. Who has the power? In the buyer’s market, the upper hand rests with the buyers. Lower prices and more selection make it a great time to purchase that next RV.  When the RV market changes and becomes a seller’s market, prices will be higher, allowing for better profits for the sellers.

Whether you are buying or selling, reading the market and paying attention to selling trends will help notify you that the time is right. Listing an RV for sale, or buying a rig is all about timing. Good timing on your part can lead to a great outcome.