How a Buyer's market is good for you
Home buyers tend to have more negotiating power in a buyer’s market. With more homes available for sale than what there are buyers they have somewhat of the upper hand through negotiations. Although buyers have a better chance of negotiating a lower price, sellers still expect to see reasonable offers.
As a buyer, how do you know how much to offer and how much to negotiate? We’re tackling these questions today.
KNOW YOUR MARKET
If you’re like most buyers, you are familiar with the market before shopping for your home. After spending months online researching styles of homes, neighborhoods, schools, and what size of home you can afford, you are well versed with the market before you even look at your first home. And this is great news! You want to be well educated with an investment you’re about to make.
Just because our market is leaning towards a buyer’s market it doesn’t necessarily mean you’ll get a ‘steal of a deal’ on a home. Some properties are priced exactly where they need to be to sell, therefore there isn’t as much negotiating room. Your exact offer price is dependent upon how well priced the property is in comparison to its competition. This is where having a buyer’s agent is incredibly helpful so that you know precisely how your top choice compares to others.
HIRE A REALTOR
While you can negotiate the purchase of a home on your own, hiring a Realtor can make the process much smoother. A Realtor can help you find what you’re looking for in a home more quickly. You can save time by eliminating properties that are outside your price range or don’t match your specific style and needs. You want to choose your Realtor based on various factors. How hard working are they? How experienced are they? Is real estate their full-time profession? How well do they know the specific market you’re seeking to buy in? Pricing from one community to the next can change dramatically. You want your agent to be an expert in the area you’re looking, or at very least be hardworking enough to find out all the information you need to know to make a wise buying decision.
It’s not uncommon in today’s market to see offers coming in 5-8%, sometimes even 10% below asking price. Depending on the list price, the seller’s motivation, location, the number of repairs and renos needed etc. will determine your offer price. Though it’d be nice to give you a specific starting point for your offer, every property and situation is unique, therefore it’s impossible to do so. This is where a detailed conversation with your Realtor and market research are vital to know if your offer will lead to a win-win between you and the seller. You want the best price. Agreeably, so does the seller. Your first offer and how well you respectfully negotiate will determine if, or where your final price ends up.
GET MORE INFORMATION
You may be able to find out more about the seller’s motivation that could help your negotiations. Confidential information such a relocation or divorce is protected by the listing agent though so it won’t be too easy to find out. This is where intuition can play a big part.
Check back next week as we’ll be discussing Negotiating in a Buyer’s Market – For Sellers.
If you’re thinking about buying or selling a home and want a local, experienced, integrity driven real estate team to assist you, contact us today! We’d be happy to meet with you; get a better understanding of your goals and see how we can best serve and support you.
Jason Rustand with RE/MAX Real Estate serves with the highest level of integrity and excellence every time. For more info on this topic or others related to real estate contact LIKE our Jason Rustand Team Facebook page, call Jason direct at 780.980.2828, email firstname.lastname@example.org or visit WeSellLeduc.com