Real Estate - It's a Buyer's Market!

It's currently a buyer's market, which means there are more sellers willing to sell their homes in the market than potential buyers...plus mortgage rates are very high at the moment. In this scenario, residences can stay longer on the market and prices of homes may begin to fall. Interest rates may also continue to be lowered. For example, a large percentage of the listings recently have had at least one price decrease since entering the market. This means that many sellers are waiting, knowing that the property may fall in price a few times.

In a buyer's market, buyers have more opportunities and leverage than sellers which means that purchasers are more likely to remain patient by taking their time and shopping around. Many of them opt to choose an agent who only represents the buyer and not the seller. The agent will only benefit if you buy a house. If you are buying a brand-new house, ask builders for incentives such as free upgrades or suspended HOA costs. A purchaser should talk to other lenders and the best financing for the house.

If you are selling your home in the market, you should sell it for an appropriate price. Make sure you realize that most houses stay on the market longer during a buyers market. Homeowners should prepare to spend more time in their home than they may want. Save money just in case it does not sell. If you find a residence before your house sells, consider renting out your home until the market changes. But if you are a seller, it is especially important to price your home appropriately. Since there is an overabundance of them available, buyers will avoid a residence that is overpriced. Make sure you determine how long houses in your neighborhood stay in the market.

When selling your residence, make sure it is clean and odor free. Mow the lawn, rake the leaves and clear the sidewalks. Clean the walls and deep clean the carpet and make sure the children's toys are out of the way. If you decide to paint the inside of the house, make sure you use neutral colors. Make sure you let light in because this can make the rooms look larger.

Offer the purchaser offers certain incentives that would encourage them to consider it. For example, offer the purchaser a realistic carpet allowance or include appliances and furniture in your home. You may offer to upgrade certain appliances. You may even want to offer to pay the closing costs, which can cost up to six percent of the total cost. These costs include loan appraisal or any other paperwork. To first time home buyers who do not have much cash, this can be very enticing.

In addition, you should arrange to have a professional home inspection, because the purchaser definitely does not want to find a major problem during the inspection process. When buyers have to wait for the repairs in a buyer's market, this could encourage them to break the deal, especially if there are plenty of other houses in the market.