Buyer’s Market: How to Take Advantage of a Buyer’s Market

    Buyer’s Market: How to Take Advantage of a Buyer’s Market

    8 Great Reasons to Buy a Home in Today’s Market

    When it comes to buying a home, timing it right is up there with location as a key consideration. Catching a housing market in transition toward the buyer’s advantage – as it is in many areas today – can save you a lot of money or allow you to buy more home for your budget. Your buying power may never be greater than it is today.
    Of course, markets vary from one region to another. But if you’ve been seeing sales prices leveling off or dropping and the inventory of home for sale growing, that signals the presence of a buyer’s market. The real estate market today has come full circle.
    People thinking about purchasing a home don’t always take advantage of transition markets. Some decide to wait and see whether prices and/or interest rates drop further – which may not happen. In fact, when a market moves toward the buyer’s advantage, prices sometimes don’t drop at all – they simply stay at current levels. That’s still a great time to purchase a home – getting in before prices or rates start to rise again.
    Buying a home now may make perfect sense for you. Consider the advantages of today’s market.

    1. Better Prices

    With more homes on the market waiting for buyers, sellers don’t expect to see the appreciation rates they had grown accustomed to. Some even drop their listing price below market value to attract attention and speed the sale in order to meet a moving deadline. Bidding wars and escalation clauses no longer threaten to take a home’s sale price beyond its true market value.

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    Homeownership: A Proven Wealth Building Opportunity

    We all have to live somewhere. Putting your housing budget to work with a home investment – rather than throwing it away on rent – makes good sense for most people in most markets. Although there’s no guarantee a particular home will appreciate year after year, history has shown homeownership to be a long-term investment that builds wealth for most people. Not only can you live in the home while it helps your wealth grow, your own home offers pride of ownership and a secure sense of place in your community.

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    1. Negotiating Advantage

    In a buyer’s market, sellers must show more flexibility not only on price but on the terms of the contract. Buyers have greater pull when it comes to negotiating contingencies – e.g. for inspections, financing, sale of a home, etc. – and other particulars, such as move-in date, what conveys with the home, who pays which closing costs, and so on.

    1. More Choice

    With more homes on the market, buyers don’t have to “take what they can get.” These days you can pick and choose from a variety of homes in the area.

    1. More Time to Choose

    Since there are fewer people out there looking for homes compared with the number of homes for sale, buyers can take more time searching for appropriate candidates and comparing them. You don’t have to rush into a decision for fear the home might immediately slip away to another buyer within hours.

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    1. Homes in Great Shape

    When buyers are harder to come by, competing sellers spend extra time and money making sure their homes are in tip-top shape before they hit the market. That means buyers get to move right in without the hassle or expense of repairs or improvements to update the home.

    1. Extra Incentives

    In a buyer’s market, builders, developers, and private sellers sometimes offer “sweeteners” to attract attention and close a deal. Today’s buyers may find the home they want comes with seller financing, a redecorating allowance, choice of new carpeting or paint color, landscaping services, an extended home warranty, a year’s worth of free utilities, paid homeowner association fees, a vacation in the tropics or some other money-saving bonus.

    Experts advise that some incentives are better than others. To take best advantage of a buyer’s market, negotiate for “extras” that actually put money in your pocket or keep it from slipping away. A deal that lowers your payments, closing costs, or first year’s utility bills is worth more in real terms than an exotic trip, which could end up costing you money.

    1. Attractive Financing

    As fewer buyers apply for new mortgages, mortgage lenders compete for business by offering more generous loan terms. Not only are interest rates still low by historical standards, buyers today can take advantage of offers including lower closing costs, waived fees, free rate locks, faster loan approval and speedier processing. As in recent years, of course, today’s mortgage industry offers a wide array of loan programs you can choose from to meet your particular financial needs and goals.

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    1. Immediate Tax Savings

    The sooner you purchase a home, the earlier you can take advantage of Uncle Sam’s generous mortgage interest tax deduction, which in effect subsidizes your payments – or shelters your income, depending on how you look at it. Tax law favors homeowners in a number of other ways too. You can take deductions for points paid on your mortgage loan, qualifies home-office expenses, expenses associates with investment properties, and more. Finally, when you eventually sell your primary residence, you can qualify to keep up to $500,000 in profits tax free if you are married filing jointly, $250,000 if you are single.

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    Make a Smart Choice

    In any market, timely, accurate information from knowledgeable professionals is the key to making the best possible investment decisions. Call us to find out how you can maximize your position in today’s real estate market. We’ll keep you up-to-date on all the latest developments and opportunities , and work with you to take best advantage of them. We look forward to serving your needs!

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    More Ways to Save Thousands Buying a Home in Today’s Market

    Today’s market presents a host of opportunities – those that often sell for less than their true worth on the market. Some of the best deals can be found in:

    • Pre-foreclosures: Owners who are over-extended on their finances often need to sell their homes quickly in order to avoid foreclosures
    • Estate sales: Settling an inherited home may be more important than getting top dollar for families who wish to finish the estate distribution process quickly.
    • Corporate relocations: Companies that purchase homes from their transferring employees often find that selling these homes at lower-than-market prices is less expensive than carrying them longer on the books.
    • Builder close-outs: Although builders may not discount the last properties for sale in a development, they often throw in valuable extras such as amenity upgrades, free landscaping, and so on.
    • Investor sell-offs: When investors are ready to shift their money to other investments or markets, they are sometimes more willing to drop a home’s price in order to liquidate their equity quickly.

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    Sandra Lowrey

    If you're planning to sell your home in the next few months, nothing is more important than knowing a fair asking price. We would love to help you with a FREE Market Analysis. We will use comparable sold listings to help you determine the accurate market value of your home. The Huntsville real estate market is one of the most stable in the country. From being the top in the nation in business growth to the top in real estate growth, Huntsville, AL lives up to its name by being recognized in national publications such as Kiplingers July issue 2009 and The Wall Street Journal in 2010 as the No. 1 place to live and work, Money Magazine's Top 100 places to live in 2006 & 2007 and Forbes best places for business 2010. Not to mention our world leading NASA agency and Redstone Arsenal! Let one of our Lowrey Team members help you find your next home in Huntsville or the surrounding areas.

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