Purchasing Real Estate In A Buyer's Market

Purchasing Real Estate In A Buyer's Market

The current condition of the real estate market in most parts of the country is decidedly a buyer's market. What that means is that there is a glut of homes on the market and few qualified buyers. A buyer's market gives buyers a great negotiating position, and purchase offers should reflect that.

Find out about new listings quickly by asking your agent to email you the newest market listings in the area and price range you are interested in so that you can move fast when something perfect opens up.

Those homes which have languished on the market for several months are easy to spot. Besides seeing the "for sale" sign out front for an extended period, they are often those which have had price reductions in an effort to produce offers. The sellers of these homes will be more receptive to low offers and negotiations.

Get a list of comparable sales in the neighborhood, including those which have recently sold and the complete information about the homes. The comps should have the address, age of the home, square footage, yard size, how many bedrooms and bathrooms, and the actual selling price. Also, check out Zillow's estimate of the home's value for comparison purposes.

Asking for contingencies like your house selling before closing on the new home are possible in a buyer's market. You should also ask for a loan contingency that would protect you in case there are any glitches with financing. Other contingencies for home inspections, pest or radon reports are also important, and during contingency periods, the buyer can totally back out of the deal without losing any deposit money.

Ask for an allowance to change something you don't like about a house that you otherwise want to call home. Be careful with the wording on the sales contract, and even check with your lender to be sure that it won't cause any issues with your financing.

Closing costs can be large out-of-pocket expenses for buyers, and during a buyer's market, the seller will usually be willing to cover part, or all, of those closing costs if it means a sale.

After the home inspections are completed, you can choose to cancel the contract or ask for adjustments in the price if you'll be responsible for any needed repairs that weren't obvious when you toured the house.

Ask for something extra, like a home warranty plan that will pay if the furnace breaks or the fridge dies in the first year after the closing. Another tactic that agents often use is asking for something you really aren't interested in, like a pool table in the basement. This re-directs the seller's thoughts from price to their personal items, and can sometimes save you significantly.

Short acceptance times can get you an answer from the seller in less than a day, and a short decision period can work in your favor. Don't give them time to talk to neighbors and coworkers who think they know it all. In a buyer's market, if they really don't want to sell, move on to the next one!

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