After experiencing years of an active market and inflated prices sales have slowed down. Although the change has been spun off in the media as negative these changes in climate make it a perfect opportunity for qualified buyers.
Here are a few of the seemingly negative aspects of today's market, along with their positive flip side.
Downside: Excess of homes on the market.
Upside: The greatest advantage for any buyer is competition; something that we have no shortage of in today's real estate market. There are plenty of properties to choose from and prices are competitive. Sellers are also providing more incentives, sometimes even covering closing costs. New developers are so anxious to sell they are offering thousands of dollars of incentives with their new homes. Sellers who understand this and market their home properly can have an edge over other property owners who refuse to make any concessions.
Downside: Homes are no longer commanding the high prices.
Upside: The prices have not dropped as much as they have leveled off to more realistic prices. This feeds the current buyer's market, making it an excellent time to buy a home. The seller needs to make adjustments to their thinking; however, and realize the once high price they sought after for their home, may not be realistic. In this market, if a house is priced within a reasonable range, and presented well, it will sell.
This attractive buyer's market will also invite reinvestment. A buyer who wasn't otherwise contemplating a move may do so under the current conditions. In addition, don't forget about the tax incentives for buying a home, including the mortgage interest deduction and the property tax deductions.
The market has also created a renewed interest in purchasing older homes in need of restoration; a practice that has resulted in some tidy profits for many smart investors.
Downside: Loss of homes
Upside: As unfortunate and tragic it is to see people lose their homes, this has created an awareness where laws are being changed, and much stricter rules for money lenders are being implemented. This has also created numerous opportunities for foreclosure sales; however, there is speculation as to the actual savings with these properties.
One thing for certain, the market is forever changing and these conditions will not remain constant forever. Be smart, adjust your strategies with the current market climate and you'll come out ahead. Make certain that you work with a professional realtor who understands the market and will help you make informed decisions about your investment.
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