Customers are finally being able
to take advantage of cooling trends in previously hot real estate markets.
Multiple offers are no longer being thrown at dealers as soon as the For Sale
sign hits the front yard.
Competition has dwindled in many
areas as real estate investors
disappear and buyers take to the sidelines. Unless a buyer thinks his local
market is headed for a big downturn, this could be the pause that allows him to
get into the market with a few perks unheard of in recent years as a bonus.
So how do you know what shape
your market is in? Economists believe that real estate is closely tied to
employment, so if you’re in an area of growing employment, don’t expect to see
double-digit depreciation anytime soon. In areas such as the Midwest,
where auto manufacturing is king, prices have fallen sharply and will likely
continue until the industry rebounds.
Here are 5 things buyers need to
know to a make best deal with real estate marketing shift to their favor:
1. Human nature is the biggest problem for real estate dealers and
buyers to overcome in a changing market. Prices stagnate or drop a few
percentage points and it’s amazing how different buyers and sellers react.
Sellers still think their house is “special” and immune to the market. Buyers
figure every seller is about to be foreclosed on and make ridiculous low-ball
offers. Smart buyers do their homework, know what size home they need, how much
they can afford and then search the market for what they want and settle
fairly.
2. Find out as much as you can about the seller’s motivation --
retirement, job, divorce, wants to move up but only if he gets the right price.
Durham says if
a buyer knows the seller’s motivation they can negotiate a better deal or move
on to the next property.
3. Multiple Listing Service
properties usually state what the seller owes. If not, your agent should be
able to track down the figures. There’s a big difference in negotiating with an
owner who owes more than the house is worth and one who has a lot of built-up
equity.
3. After 30 to 60 days the seller is usually absolutely sick of
keeping their house spotless and sick of people walking through, this is when a
seller may be the most anxious about selling their house as traffic to their
house has likely fallen sharply.
4. Unless you’re incredibly handy and have time and cash, go after
houses that are as updated as you can afford. This is easier to do in a
stagnant or falling market and fixers aren’t usually discounted enough to be
worthwhile.
6. In a tighter market, it’s not
too much to ask the seller to add the closing costs to the price of the house.
It’s better to put 20 percent down and add the closing costs to the loan than
put 15 percent down and pay the costs upfront.
8. Items to ask for that
shouldn’t offend sellers are paying for new kitchen appliances or washer and
dryer. Most sellers will be willing to do so to close the deal.
5. Make sure to look at the big picture. In changing markets you
should be planning to stay for at least five years, so don’t get caught up in a
$15,000 price difference. Remember, the goal is to get the house you want to
live in for some time, not to impress friends with how you worked the previous
owner through real estate agent.
It's always a good idea, when
purchasing real estate, to contact experts to assist you through the process to
ensure that you understand the contract and ultimately complete a successful
transaction.
