The Upper Hand

 When there are more homes for sale than the market demands, the advantage in the real estate transaction shifts to the buyer. Often called a "buyer's market," it means the purchasing party holds most of the power. Add to that a softening economy, higher unemployment rates and escalating prices, and the buyer is in a real position of strength.

Now the question becomes, "How can I use the current market condition and my favorable position in it to my advantage?" Here are four ways you can capitalize on that power position.

In recent months the real estate market in many parts of the country has softened. There are simply more homes available for purchase than consumer demand requires. However, that does not mean you should sit back until conditions improve. Now is the time when you should prepare for the future.

Price - This is the most obvious and perhaps the most important place buyers can exercise their advantage. In such a market, buyers may have the opportunity to bid below asking price, especially if a property has languished for several weeks without an offer. A proactive approach will allow you to space out the projects and the related costs.

Timetable - In a market without bidding wars and multiple offers, sellers may be willing to make allowances to keep their buyer satisfied. If you have specific timing needs make them part of the negotiations.

Repairs - The home inspector may recommend certain upgrades or repairs after his review. Consider asking the seller to make these changes or to reduce the asking price to pay for these extra costs. In different market conditions, the seller would probably refuse, but in a buyer's market, they might be more inclined to make concessions.

The Extras - Think about requesting additional items, such as window treatments and furniture, to be included in the sales price. Although it is nice to be in the party with the upper hand, a word of caution. Don't be greedy. Follow your real estate professional's lead about what is appropriate and what would be overstepping your bounds. The idea is to use the market conditions to your benefit, not to make the transaction difficult. Remember, if you take your demands too far, it could jeopardize the sale.

On Your Side

 A good buyer's agent is a valuable ally. She can help you locate desirable properties, evaluate asking prices, navigate negotiations and close the deal. In short, she is your advocate and guide, so choosing the right professional is an important decision.

When you interview prospective agents, be sure to ask about their experience, qualifications and interpersonal style. In addition, you will want to ask some pointed, real estate-related questions.

What is your average list-price-to-sales-price ratio? You want to gauge how effective the agent is at negotiating a sales price below or at the asking price. A low percentage will tell you the agent is skilled at lowering the sales price.

Do you represent sellers as well as buyers? Some real estate professionals are exclusive buyer agents while others work on both sides of the transaction. Ask how the agent would handle the purchase should you decide to buy one of the properties she represents.

What if I buy a For Sale By Owner property? Each agent has a company or personal policy on how they handle FSBO listings. Asking about their approach upfront eliminates possible misunderstandings.

May I contact some of your recent clients? Ask to speak with the last three buyers the agent has represented. This prevents them from showcasing their success stories or favorite clients. Instead it will let you gauge how they performed in the current market conditions.

Never Too Late

 Swimming is a great low-impact sport that can build aerobic endurance and strength. However, if you did not learn to swim as a child, worry not. It is never too late to take up this great form of exercise. Local community pools, YMCA / YWCA, JCC and other outlets usually offer beginning lessons for adults.

CENTURY 21 Jervis & Associates
800 N Harbor Blvd  .  La Habra , CA 90631  .  714-988-1725
KHottmann@Century21Jervis.com  .  www.KevinHottmann.com