Buying a Home in a Buyer’s Market
Well it’s no secret now, the pendulum on the real estate market as we know it today has swung back in favor of the buyers. Home sales and prices started to slow towards the end of 2005 and all of 2006. 2007 is expected to be slow as well but finally start to show signs of recovery by the fall. The buyers have a window of opportunity here in 2007 with low interest rates, high inventory of homes to choose from and with the momentum in their favor. Sellers are more likely to be negotiable in a time like this and flexible with terms, prices and maybe even help towards closing costs.
Here are some ideas a buyer in today’s market place might want to consider when looking for a new home to purchase:
• Take your time. There's no need to rush in this market, so don't worry about putting in the highest bid or writing a check the minute you like a place. Research the neighborhood to find out if the asking price is consistent with other homes in the area.
• Ask for incentives. To sell their homes, owners may be willing to throw in extras such as appliances, carpet cleaning, drapes or even patio furniture for the asking price. Try negotiating some extras.
• Shop around for a mortgage. To get the best deal available, ask for as many quotes as you can. If you get a pre-approved mortgage, you'll have even more leverage at the negotiation table.
• This might be the best time for awhile for looking at brand new home to purchase. Their still is a glut of new homes on the market from 2006 and some new home builders are adding to the new homes market with starts.
Hold onto a property for a while. Now is not the time to buy a condo or home to flip quickly for a profit. Make sure you buy a property at a good value -- you're more likely to have a good sale in the future.
In my market here in Bellingham, WA there is still a higher than normal amount of homes on the market. Buyers really have an opportunity for the foreseeable future to make some nice home buys coupled with low interest rates and I see that market has picked up some. Buyers need to just look over the inventory and make some good long term decisions with a nice fixed rate and enjoy their home ownership. Good luck.