Who said it was a buyer's market? Often, when I speak with potential buyers, they enter the market expecting to get huge discounts on properties that are being marketed for sale or they're waiting for market values to drop further. Television, newspaper articles, and 'get rich schemes' marketed through the Internet and TV all tout the ease with which a person can buy for "pennies on the dollar".
While a person can sometimes get a good deal, more often than not, in order to move from looking to buying you have to get realistic along the way. Not every "good deal" is a good deal. Let's also consider that in order to purchase a home at this time, you typically need to be a cash buyer, a W2 employee with verifiable income, possess a solid credit history, and have an excellent FICO score.
So, let's take a closer look at what defines a Buyer's market. A Buyer's market is when there are more properties for sale than people interested in buying them. Buyers have more choices and less competition which typically results in lower prices.
There are plenty of bank-owned foreclosures being offered at bargain prices. Does this make it a Buyer's Market? What you may not be aware of is that you are competing against a very large group of purchasers who are just waiting for new properties to become available. In most cases, the absurdly low list price is utilized to generate tremendous traffic on the property which drives the price significantly upwards. Expect that multiple offers will be submitted to the lender - many of which are cash purchasers. Does this scenario match the definition of a Buyer's Market? Nope!
To further analyze the purchase of a bargain basement property, let's also consider that the property is most likely being purchased "as is" and that unknown repair costs could exceed the fair market value. So, proceed carefully and utilize the services of an experienced buyer agent who can counsel you on what constitutes a strong Purchase Agreement, help you compile repair estimates, and determine whether the market value of the home after repair is lower than, meets, or exceeds the expenses you've incurred in purchasing and re-habbing the property.
Well-priced homes combined with outstanding interest rates make this a great time to purchase a property. Don't get caught up in whether it's a buyer's market but focus instead on property that meets realistic goals.
Are some housing categories experiencing a Buyer's market? Yes, some segments of the real estate market are. Other segments are experiencing increasing market values. A Buyer agent can help you determine whether your expectations meet current market conditions and derive a realistic plan of action to help you achieve your goals. Integrity Residential Brokerage, licensed in both Massachusetts and New Hampshire, would be happy to assist you in your home buying or home selling needs. If you, or anyone you know, is considering buying or selling a property, Integrity Residential Brokerage located in Pepperell, MA, would love to hear from you! We strive to offer you the highest level of professional assistance possible making your desires and goals a reality.
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Information deemed reliable but not guaranteed. Please note that individual listings periodically mentioned in this blog are accurately described in terms of availability and price at the time of the posting. Because properties are constantly coming on and off the market, please contact Catherine for the latest information on those that are of particular interest to you.