A Buyer's Market 

A buyer's market occurs when there are more houses on the market than buyers. Housing inventory is high, and buyers have the luxury of taking their time browsing and making their decisions. Real estate prices decrease, and homes linger on the market longer (rocketmortgage.com). In a buyer's market, the buyer holds the power. Sellers must compete with each other to attract buyers. As a result, sellers drop their asking prices to gain an advantage in the market (rocketmortgage.com). Sellers are also much more willing to negotiate offers to prevent buyers from walking away (rocketmortgage.com). Therefore, the buyer will most likely be able to bring down the price, ask for contingencies, and possibly even subsidiaries. 

Tips for Buyers in a Buyer's Market 

"A buyer's market is the ideal time to purchase a new home because prices are lower and there are fewer buyers to compete with" (rocketmortgage.com). 

1. Take your time. There is much less concern over losing a property in a buyer's market than in a seller's market. With houses staying on the market for longer, you can be more leisurely in your search. Make a list of what home features are most important to you. Do not settle. With a high inventory of houses available, chances are good you will find the perfect home if you are diligent about looking.  
2. Know what is available and analyze comparable properties. By studying what is available, you not only increase your chances of finding a home you love, but you will be knowledgeable on how similar homes are priced in a particular area. By comparing home prices, you can better negotiate the price of the home for which you decide to submit an offer. If the home you want to purchase is priced higher than other similar homes in the area, you can present comparable houses to the seller to argue a solid case as to why the seller should lower the home price. 
3. Pay attention to the number of days the house has been on the market. The longer it has been listed for sale, the more leverage you have to ask the seller for a lower price, contingencies, concessions, and repairs. 

Tips for Sellers in a Buyer's Market 

"If you find yourself selling your home during a buyer's market, do everything you can to make yours stand out" (rocketmortgage.com). 

1. Make repairs and minor improvements. With many houses on the market for buyers to choose from, they will be pickier. You will want to get your home in the best shape possible before listing it. Remember, first impressions are everything. To be competitive, you must present your house in the most positive light.  
2. Clean and depersonalize. A deep clean of your home is essential. Consider paying a professional service to take care of this for you. Decluttering is equally crucial. Less is more, and the less personal, the better. Remove family photos, papers, knickknacks, and souvenirs. If your furniture looks worn and out of date, hire a stager. Bad décor is distracting to the buyer and detracting to your home.  
3. Market like a pro. Hire a professional to take photos of your home. Doing so will make a huge difference in the caliber of presentation. Professionals have a much higher quality camera than your cell phone. They know how to utilize the light best, straighten wall edges in postproduction, and make the shots look as aesthetically pleasing as possible. Photos are what buyers first look at when they see your listing, and they will decide whether or not they want to see your home based on the images.  
4. Price competitively. Research the homes listed in your area with similar square footage, number of bedrooms and bathrooms, and layout. Make sure you list your home at the same price point or slightly below. When you receive an offer, give it careful consideration. Since you have less power to negotiate, you should be willing to pay part of closing costs and pay for requested repairs. 

In Summary 

If you are a buyer in a buyer's market, you have the advantage. Do not be afraid to ask for what you want. If you happen to be a seller in a buyer's market, understand your position of limited power and do the best you can to make your house as appealing as possible. 

Sources: 

rocketmortgage.com