Over the last year the market has turned into a buyer's market. By definition, there is a high amount of inventory, homes stay on the market longer and prices are lower than they were two years ago during a seller's market.
So why is the market activity down? Why are people not buying? The market activity during the past seller's market was heavy. Buyers were trying to outbid each other and overpaying for homes. Now, when the tables are turned is the perfect opportunity to buy a home. Yet, when I mention this to some buyers they tell me they are waiting for the market to drop even more. Do they know something that I don't. Interest rates are still low, how much money are the potential buyers going to save if they do happen to time the market exactly?
Here are some ideas to tell your potential buyers.
If you are waiting for ideal conditions, wait no longer, the time is now!
Sellers are willing to negotiate price now! If the seller's home has been on the market for an extended time, they are willing to listen to your lower offers!
Do you have to sell your home prior to buying a new one? Seller's are not getting multiple offers so a contingency in the contract is not an automatic refusal for a seller any longer.
How about the seller paying for some closing costs? If you can't get the price down to where you want it or need some extra cash for closing, now is the time when seller's may kick in some money towards the closing. Some seller's don't mind paying for the costs if they feel they are getting a good price for the house. (I am not sure what the logic is here but it does seem to work out this way!)
Does the home need some repairs which were found out during the physical inspection? I am not one to advocate nickel and diming a seller for minor repairs but if something should be fixed that is critical, the seller is not going to walk away from the deal at this point in time. Either have them fix it or provide a credit to get it done after you move in. If the home is not in great condition and you are going to fix it up anyway over the next few years, get the seller to provide a home warranty, usually good for one year after closing. This way you will not have to worry about any major repair bills in the first year.
If you need something else, ask the seller! If you don't ask you will never get it! A later closing, a longer mortgage commitment date or a longer inspection period would all be turned down in a non-buyers market. Now, you just might be surprised how anxious a seller is!
James-- I think you are right!!! Especially in the Bergen County market.. Yes, their are pockets in the
U.S. that will have tough time over the next year or so. The problem in our area is the MEDIA!!! If I read
one more Bergen Record negative real estate article... well I don't know what I'll do.. It's hard to keep
telling the tri-state buyer that things are not bad. Our home prices are not collapsing and rates are actually
going down and are very attractive.. JUST KEEP SPREADING A POSTIVE OUTLOOK...SOME WILL LISTEN!!
thanks--mike
Hi Mike!
Yes the Bergen Record sure does put a damper on its real estate news. I tell sellers it is a great time to buy if they price thier house correctly. Especially if they are planning to move up The homes are still moving if the seller stays realistic in thier expectations. they may not get as much as they would have tow years ago in terms of price for thier home but on the buy side they are saving much more given the same percent drop in price. I estimate the market prices to be about 10% - 15% lower than the peak in 2004 - 2005.
Hey James ( and Michael) --- The TIME is NOW!!! I cannot agree with you any more... My buyers are out in force and more often than usual and I do see them motivated to put their thoughts in writing and I think my sellers are more anxious to see reasonable offers....So, the time...is NOW!
Hope you are well... ;) Pamela