It's a Buyers market, and If you're looking at the thousands of homes for sale in your local area, I hope this article I wrote for our UAR membership and their clients Saturday will help you take advantage of it.
How to Make the Most of a Buyer's Market
President's Message
Chris Sloan
Reports of lower real estate sales and prices may come as gloomy news for home sellers, but for potential home buyers who have a chance to cash in on one of the strongest buyer's markets in years, things couldn't look better.
A buyer's market is characterized by high inventory and low demand, a situation where many sellers are competing to sell property to fewer buyers. Buyers have more negotiating power and sellers are more flexible, which ultimately results in lower prices and a better chance of getting the home of your dreams.
Over the past few weeks, I've talked about the some of the unique characteristics of this particular buyer's market, including the super-low mortgage rates and the new $8,000 tax credit that does not have to be repaid. Alone, either of these incentives would offer a compelling reason to look at buying a home in the next year, but there are other less-obvious benefits as well. Below are some of the additional ways you can make the most of today's market.
Take time to shop around
Because there are more properties and fewer buyers competing for those homes, you can take longer to shop around. Instead of settling on the first property you like, you have time to look at as many homes as you want and carefully choose your favorite.
Compare mortgage rates and fees
Less urgency in the marketplace gives you more time to shop for a home loan. Use that time to compare various lenders' interest rates and fees. Even though mortgage rates are extremely low right now, taking the time to negotiate loan terms could save you even more.
Hire a buyer's agent
If you're looking for bargain-priced property, hire a Realtor who will represent your interests. A buyer's agent will be able to provide you with up-to-date information about new listings, price reductions and, if you're interested, information about properties in the foreclosure market. Your Realtor will also work to negotiate the price and favorable contract terms.
Know the neighborhood
You won't know how much to pay for a property if you are unaware of the competition or are unfamiliar with the market. This is especially true because real estate markets are so localized, with similar houses selling for different prices depending on the neighborhood. Have your Realtor show you the price of comparable properties that have recently been sold. Armed with information, you'll know which properties are a good deal and which ones need to come down in price.
Use time to your advantage
In your offer, ask for advantageous time frames. Don't give the seller tons of time to accept your offer, but make sure you have enough time to conduct your inspections and other due diligence.
Negotiate closing costs
Home buyers typically pay a percentage of the property's price in transaction costs. Try asking the seller to pay a portion of these costs. This could lead to thousands of dollars in savings.
Ask for extras
For new home construction, many builders may be willing to throw in free upgrades, especially if the builder has a lot of unsold inventory. For existing homes, sellers may be agreeable to making repairs or may reduce the price in order to compensate for the cost of the repairs. Also, ask for a home warranty as part of the deal. A year's worth of coverage on the home's appliances and operating systems will prove valuable should something go wrong after you buy the home.
Bottom line: In areas where there are a lot of homes for sale, builders and sellers may be willing to make more concessions in order to get the property sold. For more home-buying tips or information on how to make the most of today's market, contact your local Realtor. To find a Realtor in your area, visit http://www.utahrealtors.com/
If you don't currently have a Realtor, we'd like to apply. To check us out stop by our website to see how serious we are. Click on Tooele Real Estate. To have access to the thousands of homes for sale in Utah click on Utah MLS Home Search. You'll get maps, prices, addresses, photos and information to help you take advantage of this Buyers Market.
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