How to Take Advantage of Today’s Buyers Market

By Raymond Stoklosa · January 6th, 2009

Buyers Market As promised in our last blog, here are some suggestions to take advantage of today’s market conditions.

A “buyer’s market” is named such because the forces that move the market provide more leverage on the buyer’s side of the buy/sell equation. However, that’s only relevant when you do actually buy and buy right. If you are buying to occupy the property, your goals are to find the most suitable home and purchase it at the lowest price possible. Here are some ideas to help you achieve your goals.

Look for homes owned by motivated sellers, such as, bank owned (REO), pre-foreclosure homes and short sales
Look for homes listed for 6 months or more
Look for homes that are just coming back on the market after a failed transaction
Look for homes in relatively poor condition that are in need of remedial work, such as, a cosmetic makeover
Make aggressive offers – especially on bank owned homes and other distressed properties – every dollar you save on the purchase is another dollar of profit when you sell
Ask for concessions, such as, credits for closing costs, prepaid HOA dues, insurance and property taxes
Keep making offers on the home you really want until seller tells you to go away or the property sells to someone else
Buy the very best location you can comfortably and confidently afford – location usually trumps condition
Buy for the long term – at least five years
If you find two homes simultaneously that you want to own, make offers on each and build in a contingency to give yourself a way to cancel should both offers be accepted (You’ll need the help of a professional Realtor to help you with this)
For single family homes in particular, be aware of the quality of the schools serving the property, as that will affect value

As you are searching for deals, just keep in mind that superior properties will retain their value no matter what type of market it is. While we urge our clients to seek out hidden gems, we also encourage them to not hastily pass up their dream home in search of greater discounts. Cheaper properties will almost always be available, but those properties may not suit your taste. Even in a buyer’s market, in the end, you get what you pay for.

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