|
WHAT IS THE CURRENT MARKET? DOES IT FAVOR BUYERS OR
SELLER?
When in the market for a new home, your estimated
fair market value is not the only factor that
influences the value of a home you are interested in
buying. You need to determine if the area you are
interested in buying in is a seller's market, or a buyer's
market.
Estimating the fair market value is still necessary, but
you need to realize that the numbers you come to are only
estimates and can be based on house sales from 6 months or
greater. Believe it or not, a lot can change in six
months. Resulting in a shift from an area being a buyer's
market to one that favors the sellers, and vice versa.
Seller's Markets
You will need to negotiate close to market value if a
house you are interested in is located in an area that is
a seller's market, with houses selling quickly, for prices
close to asking prices. You don't want to lose a house
that you are interested in by playing games over the
price.
Sometimes, a house is in area that is so favorable to
sellers, that more than one offer is made on the property
at the same time. Often, the highest price will be
accepted, with no negotiations taking place. Sometimes, a
seller will negotiate with all potential buyers at the
same time. This type of seller is looking to get the most
dollar for their house. There are some tactics you can
follow if you are putting a bid on a house that has
already had bids placed by several other buyers. First
off, make sure that you have a loan approval. This will
show that you are serious about buying. Also, when trying
to close the deal, don't ask for any extras in the sale
(i.e. asking for appliances and/or furniture to be thrown
in). Another thing you can do is let the seller know that
you are very flexible in regards to when you want to
close.
Buyer's Markets
If a market is soft, it favors the home buyer. If this
is the case, the house may already be on the market for
some time. A buyer's market will give you the upper hand
and probably allow you to make a purchase at a price that
is substantially less than what the seller is asking. You
will also have the flexibility of pacing the entire
process at your speed, closing when you want.
It is important that you conclude what kind of market it
is as soon as you are interested in the property. If you
delay, and it is a seller's market, you may miss out on a
house you really like. On the other hand, if you fail to
detect that an area is a buyer's market, you can end up
paying more than you should for a house.
Evaluating the Costs of Homeownership
Understanding the Housing Market
Calculating Mortgage Payments
Determining if Your Salary is Enough for the Loan You Want
Selling a Home?
Learn what you can do make your home more appealing during the
winter months
Removing clutter and junk will help you sell your home |
