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Real Estate Market Overview: Why it's a great time to buy a home.... I'll let you in a on a secret.....

By LePage Johnson

Real Estate Agent with Keller Williams Realty

September 20, 2008 08:07 AM

$200k Charlotte Area Home With all of the gloom and doom we hear in the media on a daily basis what else can we think but to just stop everything. Why not just wait? Let me tell you why you should act now and act quickly. Right now we are in the middle of what is called a "Buyers Market". A buyers market is a market in which the buyer has the upper hand in negotiation the sale of a home. Due to a number of circumstances home prices around the country are on the way down. If you are looking to buy a home this is a good thing. You get more home for the money in today's market.

Although prices are lower, buyers have a few tough hurdles to jump over prior to purchasing their new home these days. Mortgage Lenders have tightened up their requirements for loan approval and future buyers might also have trouble selling their current home if it is not priced right. THIS IS WHERE I'LL LET YOU IN ON THE SECRET. Buyers come from a few different circumstances and situations.

Situation 1 - RENTERS: Renters are in a great position to buy right now due to the fact that they do not have to wait to sell their current residence. After jumping through a few hurdles you are on your way to a great deal. Simply Put..... It is a great time to buy if you are a renter.

Situation 2 - CURRENT HOME OWNERS: With it being a buyer's market many home owners are reluctant to put their home up for sale knowing that they will not get top dollar for it. Many current home owners would like the opportunity to move up to a better, more expensive home while prices are down and rates are low. This is where things get interesting if you look at the big picture.

WHAT YOU SHOULD KNOW IF YOU ARE BUYING OR SELLING......
Let's say your current home is put on the market at $200,000 and the buyers negotiate an offer of $186,000. That is a 7% reduction from your original price and at first that may seem awful. Don't worry! Now it is time to look for your new home which you are hoping to buy in the low $300's. You find the perfect home priced at $310,000. Now you are the buyer and you have the upper hand, allowing you to negotiate a good price in your favor. If you negotiate the same 7% off the price of your new home you will save $21,700 and only pay $288,300 for that $310,000 listing. Where you sacrificed $14,000 on the sale of your old home, you saved $21,000 on your new home. In the end you walk away with a profit between the 2 deals of $7,700 and a new home that you may not have been able to afford in a Seller's Market. IF YOU ARE LOOKING TO MOVE, NOW IS THE TIME TO DO IT.....

Contact: The CRAIG R. LEPAGE REALTY GROUP today at 704-618-2412 if you are thinking of listing your current home and/or purchasing a new home.