Whatever the Market, It’s Always a Good Time to Buy (2)
Looking at many homes and comparing areas and price-per-square foot increases your ability to spot the good deals and move decisively when you do find your dream home. Buyers who purchase when the real estate pendulum favors them and then wait until it favors sellers before selling can make big profits. Timing and luck are important in making this happen, but keeping a close eye on sales in your area can increase your odds considerably.
High interest rates, a recession, or a local employer’s shutting down or cutting back on its workforce are some of the variables that can result in a buyer’s market. In fact, anything that negatively or seasonally affects the local housing market can cause a short- or long-term buyer’s market.
In a buyer’s market, prices and terms soften. Sellers are more willing to pay seller concessions to give their house a competitive edge as more homes come on the market. Even sellers who may not be willing to lower their prices may, however, be willing to pay a few thousand dollars for the buyer’s closing costs.
Seller concessions can be anything that entices a buyer to select one home over another. Typical seller concessions may be:
- Paying all or part of the buyer’s closing costs.
- Including appliances or fixtures in the deal.
- Offering painting, carpeting, or other decorating allowances.
- Extending or shortening the closing dates.
- Replacing home components such as roofs, siding, and windows.
Always add concessions to your offer to buy, particularly asking for the payment of closing costs. It’s amazing what sellers will agree to when they have a bird-in-the-hand offer on the table. This can often free up a few thousand dollars you can use to redecorate your new home.
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