Just about everyone enjoys finding a bargain. We love to find stuff on clearance or discover a really sweet deal!
There is this tendency when the market softens and slows down for Buyers to expect greater bargaining leverage when it comes to home sales prices.
Typically, when a market shift takes place that favors the Buyer (commonly referred to as a ‘Buyer’s Market), there is high level of inventory of homes available for purchase. At the same time, as ‘Days on Market’ increase (the number of days on average that it takes for a house to sell/close), Sellers begin to reduce or discount their listing price. Add to that the number of recent short sales and foreclosures that have occurred due to our current economic conditions, and you have the potential for finding some really excellent bargains for today’s Buyers.
So what is the effective Buyer strategy for making an offer for less than the asking price?
To discover the answer, just click on over to SOUNDBITEBLOG!
~ o ~ o ~ o ~ o ~ o ~
Rich Jacobson is a licensed real estate professional providing empowerment and relentless representation for his clients of residential properties and vacant land throughout all of Kitsap County WA and portions of Pierce, Mason, and Jefferson Counties. You can also find him at KitsapLife.com, SOUNDBITEBLOG, and Crabbing in the Hood.
Buy quickly before the market shifs and you find yourself behind the curve into a seller's market.
I was going to call you a tease, and then I saw Lenn's response. It won't be a buyer's market forever, and at the big sales... the cool stuff flies off the shelf.
The good deals move fast so if the buyers are waiting for the market to bottom before stepping up to the plate, the really good stuff will no longer be available. In the current climate, more than ever, I have agents calling me and asking if properties their clients are considering are "fully available" before they take their clients to see it and again before they make an offer. Their concern is low balling the offer to a point where they'll lose it.
I like Lens' answer. And I find it different with every buyer. Some want to aggressively go for the jugular of whatever sellers' listing they happen to like, while others will look at the actual proof of current sale prices. Each one has to be treated according to their actions.
Rich, I just left a comment over at Soundbite Blog, but will add another comment here. I love your Soundbite Blog!!! :)
I agree with Lisa. I have many buyers that want to go for the jugular, no matter what the comps show. I dread writing those offers, when the stats show the value.
I am working on an offer now and can't wait to low ball them. They wanted me to list their home last fall, $30,000 over market value, in my own neighborhood. NO WAY was I going to have an expired in my neighborhood, let alone risk my reputation of taking a listing that was so overpriced. I ran across the email I sent them last fall, telling them what the sale price would be etc. So funny...my buyers want to offer exactly what I told them it will sell for! (I'm so mean, being excited about the low offer...but we ARE offering market value!).
Hope you have a great week my friend!
Hi Rich - Good comments so far, and I like what you said in your Soundbite blog. When I'm representing a buyer who wants to make a low offer on a property that has been on the market for quite awhile without a price reduction, I urge the listing agent to discuss with his/her client the cost of leaving the house on the market - and that cost multiplies every month it's on the market, while the home becomes less and less desirable because most buyers' agents will assume there is something wrong with it after awhile and won't even show it. If the listing agent will sit down and pencil out the cost to the seller of waiting vs. taking our offer, they'll see they should take it.
Rich,
Great linking technique. We had a seminar today and spoke about the coming shift in the market, as more buyers buy.
Richard
Like Leah said, I call the agent before showing and again before writing an offer to see if the property is still available - the good ones go quick.
Nice article on your soundbiteblog - I will go back for the follow up.
Rich
It tends to be a standard norm lately; even when I educate my buyers they sometimes think they are kicking tires hard.
Tom
Rich,
Sometimes the market changes in ways that are not initally anticipated. Buyers sometimes get the idea they have more leverage than they really do.