The term "Buyers Market" does not mean the sellers are going roll over completely. In fact, in certain price ranges, you are likely to lose out on the house you want by making a low ball offer. It may have played in 2007 but the tide is turning. Buyers are competing strongly for the supply of reduced price homes in Osceola County in the range under $160,000.
Public Misconceptions
Consumer confusion and misconceptions of industry terms such as "Buyer's Market" has lead some potential home buyers into a false sense of certainty, their way below market offer might get them a home. What is now coming to light is that houses they can afford are in high demand with buyers in the same price bracket. The lower the bracket, the higher the demand. A Buyers Market meant there was a sufficient inventory of homes when compared to available buyers. Not the popular belief a seller "will take anything" because the "market is so bad. "
What is NOT considered can kill your chances
There are few properties without debt attached to them. Low offers too often discount that reality. Offering someone less than they owe is not likely to produce a "meeting of the minds". Properties in short sale or foreclosure still do not mean a offer of pennies on the dollar is acceptable. Not in this market. Unless you fancy rejection, a meeting of the minds can only be obtained when the offer is acceptable to ALL Parties.
A sure fire way NOT to get the house you really want, is to go in so low, that the offer is rejected and present the opportunity for someone else to look good by presenting a better offer.
Asking For the Sun, Moon and Stars
Buying a house in TODAY's market, means you will need down payment money. Asking for the sun, the moon and the stars will not get a deal made. Be prepared. Speak with a lending professional before looking at properties. Know what your price ceiling is, and work with a professional REALTOR to stay within that range.
BE realistic. You are not likely to get a brand new 3000 sq ft house for under $200,000. Establishing a want list and need list helps fine tune what you can afford and matching it to what is available is what REALTORS do.
BE READY TO ACT
Thinking it over, opens the door for the next buyer to take your house. There is stiff competition in the homes reduced to under $160K in St. Cloud, Florida right now. You are not the only one out there looking for a deal. Numerous buyers have entered the market looking for affordable, well appointed homes and often they are ready to make an offer while you think it over. IF you find the one you want-
Today's Market is just that TODAY. What was happening three months ago, six months ago or even last year, is not an accurate reflection of the daily changes REALTORS see happening. What is happening now is good news not only for you but for everyone else shopping in your price range.
HOW TO LOCK IN YOUR HOUSE
Be straight forward.
Hire a REALTOR® you trust- they are local market experts.
Preview homes online and narrow the field to a select few you really want.
Have down payment funds ready and bring your checkbook when you go to viewings.
Write a "Clean Contract"
WHAT IS A CLEAN CONTRACT?
A "clean contract" is one unencumbered, riddled with contingencies, full of unrealistic demands, and is easy to agree to. Backed up with a Pre-Approval Letter, and a significant deposit. That shows the sellers you are serious.
With mortgage money more readily available, there are more people ready to take action. People who makes the best deals, are the ones who don't procrastinate. Taking a page out of eBay. If you want it, aggressively go after it. If you wait some one else may BUY IT NOW.
Good Luck and Sell well!
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Hi Allison,
Excellent post! Very timely advice to Buyers and Realtors as well. You are so right on the money on this one. The Buyers need to be aware that they still have competition.