Hot Market - This is an extremely competitive market, one that is advantageous to the seller. Sometimes homes will sell as soon as they are listed or even before being listed. Typically, during a hot market, multiple offers will be made on each home and more often than not, homes will sell for more than their asking price. It is even more crucial to be prepared and to be ready as a buyer when the market is hot. It can be easy to get caught up in bidding for a home, but if you are prepared (pre-approved and realistic about your needs), it is easier to remain focused on your housing needs and price range.

Normal Market - In a normal market, there are usually many homes available and an average number of buyers. This market does not necessarily favor the buyer or the seller. A seller may not have as many offers on the home, but he 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.