Yes, Dorothy, this is a buyer’s market and getting a deal is easier than it has been in many years. Not easy, but easier than at any time in the past five years. And don’t forget, the balance can change back in favor of sellers very quickly With that in mind, let’s look at where the deals are. First, new home builders, especially if there is a lot of new construction going on in the area you want to move into.
When dealing with builders, you may be most effective in seeking upgrades, getting them to help pay your closing costs or negotiating an interest rate buy-down. Builders really don't want to lower a purchase price because they feel that the lowered price will become a comparable sale, thus hurting future sales and appraisals.
Don't be afraid to make a low offer to a builder. The worst that can happen is that he will decline your offer and counter with another price.Put yourself in the builder's position. He may have an inventory of 20 houses sitting finished and empty, and the bank is breathing down his neck about the construction loans, and now he finds himself with too much inventory and not enough buyers. He may be much better off taking your offer than allowing a house to sit there another week.
On the other hand, these techniques may not work quite as well with the sellers of a resale home. My advice on buying resale homes in a buyer's market is quite different. Instead of making lots of offers and pitting one seller against another, you can benefit most from disciplining yourself.
You should see a lot of houses and shop and compare to find the one you really want. No, it's not smart to let the seller know you have several homes in mind and that you are hoping to get a substantial discount.Instead, my advice is to make a low offer, perhaps as much as 10 percent to 15 percent below asking price. In addition, it's smart to ask the seller to pay closing costs and any other concessions you choose.Then instruct your agent to communicate to the seller that you love the house, that you know the house is worth the sum they are asking but that this offer represents all you can afford to spend.Again, put yourself in the seller’s position. If you have two close offers, do you want to sell your home to someone who is going to remodel your kitchen, redo the landscape and take out all those rose bushes you planted, or someone who really appreciated your efforts to make the house a home?If you or your clients, friends are ready to buy, give me a call!
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Thanks for the enlightening post!