Well, it’s a new year and everyone’s wondering what the Real Estate market will do this year. I can tell you this…….There is plenty of inventory out there! This may be the best time to buy Real Estate that you have ever seen. It is truly a buyer’s market. That said, there are several things you should remember when buying Real Estate in a “Buyer’s Market”.

  1. Obtain comparable sales.  Ask your real estate agent to print out a list of similar homes that have sold in the last few months. In this declining market, comps more than several months old may not be valid.
  2. Request Contingencies.  In a buyers’ market, you’re in control. Write your offer contingent upon the property appraising at the agreed upon sales price and on obtaining your loan. Check with your lawyer to find out if you can ask for a loan contingency that will protect you all the way to closing. Ask for a reasonable period to conduct inspections and to approve title, geological and pest reports. Ordinarily, during contingency periods, buyers can back out without risking a good faith deposit.
  3. Ask for an allowance or credit towards new carpet or paint.
  4. Reduce your closing costs. Many sellers in a will offer to pay some or all of your closing costs in an effort to make their house more desirable.
  5. Renegotiate after home inspections. Always, always, always get a thorough home inspection. Use the home inspection report as leverage to negotiate with the sellers. Most contracts give buyers the right to cancel a contract if the home inspection reveals repairs or defects that are unacceptable to a buyer.  However, if the repairs are minor, you might want to renegotiate the sales price or ask for a credit against your closing costs.
  6. Request extras.  Many sellers are offering a Home Warranty with the sale of the house.
  7. Ask for an item you don’t want. A pool table, flat screen TV, or furniture.  Ask for it in your offer and use it as a negotiating tool. Often this draws the sellers’ thoughts away from price and directs those thoughts toward the personal property. If the listing stated the washer and dryer are not included in the sales price, ask for them. If the sellers balk, tell your agent to say, “OK, if we leave the washer & dryer, are you then ready to sign the offer?”

The bottom line is that in a Buyer’s Market, you hold the upper hand in virtually every facet of a real estate transaction. Be patient and find that dream home.

Dan High