It’s a Buyer’s Market

This is a buyer’s market.  That’s not front page news.  But buyers still need to discern how they will buy a home.  National statistics are interesting and relevant, but when it comes to making an offer on one home in one neighborhood on one day, a buyer is no longer dealing with averages or medians or trends.  He is dealing with one seller, and he is negotiating one price.  So while it may be a buyer’s market generically, the wise buyer will discern how to handle the offer and negotiations for the one house he wants to own.

Buyer’s Market – Yes or No?

It is a buyer’s market, but it may not be a buyer’s market for one house.  If you find “the one,” that one ideal home that you want and it’s in the right neighborhood, and the listing price is within a price range that seems reasonable, you are at a good starting place to make an offer.  If the home you are interested in is one of the hundreds of homes that have been on the market for a long time because no one really wants them (unattractive area, or weird floor plan, or old dumpy house, etc.) then you can play it out just like you would in any buyer’s market.  But . . .

If you are interested in one of the nicer homes in the nicer neighborhoods, and the price is right, then you can be sure that many other buyers who think just like you, are also looking for the same home.  In this scenario, and it is a very common scenario in many areas now, you cannot behave as though you are in a strong buyer’s market.  Fool around with the negotiations and another buyer may simply buy it out from under you at a higher price.  That has happened to this broker several times in this recession.  Stories are appearing on blogs across the country about similar experiences.

Buyer’s Market – Touchy

It is a buyer’s market, but experience and negotiating knowledge are needed now more than in any market this author has seen in 37 years in real estate.  There are a thousand ways to make a mess of a negotiation or to kill a transaction entirely.  It happens every day somewhere.

Buyer’s Market to End

This buyer’s market will end soon.  Interest rates are at a historical low, and recently they were the lowest they’ve been in the history of fixed rate mortgages.  There’s no doubt that there is one way for interest rates to go, and it is not down.  The other reason this buyer’s market will end is that housing prices in stable areas are at or near a market bottom.  For the homes that qualified buyers want, those prices are already increasing in recent weeks.  Wait for six months to a year, and two things are likely to happen.  Interest rates will be higher and prices for the home you want will be higher.  Forget about the foreclosures and the dumps.  Those prices won’t be higher.  It’s the nice homes that buyers like you want that are bottoming out on price, and there is one logical direction those prices will go, and it’s not down.

This is a buyer’s market, but it will not last much longer.

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