What Buyers Should Do in a Buyer's Market

People in search of residential property right now know it’s a buyer’s market out there. Nationwide we have an excess of inventory, the number of new home starts is decreasing, mortgage rates are still low, and prices aren’t appreciating. So, as a homebuyer, you are in a good position to get a great deal. You know it, and the sellers know it. But, with sellers already listing their real estate at lower price points and adding incentives to sweeten the deal, how can you ensure you aren’t dipping too far beyond the point of no return with your offer and losing your chance at purchasing the property? That’s where we can help you.

As with any negotiation, it is important to be able to back your reasoning with well-researched data that shows your offer is not unfair for the market at hand. And the more facts and relevant information you include with your bid, the less the seller will assume you are just low-balling for the sake of getting a steal. No one wants to feel like they’ve been cheated, especially when it comes to major investments like property, so it’s important to do the leg work and build up a case – don’t worry, Dream Town agents are experts with this stuff.

It’s vital to take into account the local market conditions, in addition to the motivation of your specific seller. We’ll investigate whether the houses in the area selling and find out what comparable homes are selling for. As your buyer’s agent, we can also figure out how long the seller’s property has been on the market and whether the price is consistent with similar houses in the area. Has the listing price been reduced and if so, by how much? Why is the seller trying to unload the property? Many people have to relocate for a job and need to sell their existing place. Perhaps they’ve already purchased another home somewhere else, in which case the motivation is probably even higher. With answers to all these questions we’ll assist you in piecing together a profile on which to base your bid. Then, we can compile the data in a presentable format that clearly shows not only the trends of the nearby residential real estate market, but also how the particular property fits in the standard mold. It will create a snapshot of the situation that the seller can easily see and keep in mind.

By working with your Dream Town real estate agent, homebuyers can learn to evaluate the information and come up with an offer. By stating the facts and showing the seller you are bidding within a reasonable zone, you reduce the likelihood of being dismissed completely, even if the offer is well below the original asking price. Never hurts to do your homework, or have a professional do it for you!

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