Trying to decipher the current real estate market can be monumental task! It's not just about the market reports, it's about you as an individual. Who's side are you on? Are you a seller trying to beat the market, or a buyer looking to cash in on a golden opportunity?
Today I'm here to talk about buyers. Markets have shifted in their favor, and what's important to consider is just how much power and flexibility a buyer can actually have. There's 3 key factors to consider when considering a purchase that can affect your strength in the market.
What's Your Credit Situation?
This is not one of the big negotiating factors, but it does have a key impact on your decision to purchase a home. Your credit score affects your ability to get a loan approval. The better your credit situation is, the more flexibility you control regarding the cost of purchase.
Buyers with large cash reserves can avoid primary mortgage insurance, which can help bring down costs. If your Debt-to-Income ratio (DTI) is low, you can get a lower interest rate. With rates sitting below 6% right now, better credit worthiness can greatly improve the interest rate that you lock in for your purchase.
What's Your Price Range?
Markets are unique, even within different price ranges in identical geographical locations! The average time on market in Charles County right now is 160 days. There is, however, a location in Charles County where average market time is 45 days. Why is that? Because they're all priced under $200k. It can be harder to get a great deal when the market in a given subdivision is not suffering like the rest of the region.
That being said, if you're looking in a higher tier price range, say $400k or more, you're likely to find that homeowners are really struggling to sell right now, and you may be able to make an offer on an expensive home and get it for a really great deal!
How Low Will Your Seller Go?
Here's the real key, know you seller! This is a big financial transaction, and every little bit of information can help you craft an offer that is the most beneficial to you!
Ask some important questions:
1) Are they in financial trouble?
2) Are they serious and motivated to sell?
3) How long has the home been on the market?
4) Have they dropped the price recently?
What Does Your Hand Look Like?
All of these factors make a difference, and it's one of the things that makes a GOOD Realtor worth their weight in gold! There's no doubt that buying a home is a process of negotiation, and understanding what options and incentives you can offer compared with what the seller has and/or needs can pay off well for you! Buyers have the upper hand in this market, let's make sure that you're holding all the aces!
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