This is an extremely competitive market, and one that is very advantageous to the seller. In many instances, homes will sell as soon as they are listed or sometimes even before the house is listed. Typically, during a hot market, multiple offers can be made on a home and usually the home will be sold for the asking price or more. In this type of market it is crucial to be prepared and to be ready as a buyer when a property comes along that looks attractive. It can be easy to get caught up in the bidding 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.   

In a normal market, there is usually a larger number of homes available than there are buyers. This type of market does not necessarily favor the buyer or the seller. A seller may not have as many offers on their home, but they 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.   

In a cold market, houses can be listed for more than a year and the prices of houses listed can drop considerably over time. This market usually favors the buyer. As a buyer, you have the time to prepare an offer that works to your best interest. It is not uncommon to offer substantially less than the asking price and to find that sellers are accommodating to reach an agreement. However remember that even though this market is a great time for buyers, you do not want to lose the right home by being unrealistic. Your goal is to get the home that is right for you at the best possible price.