For different home buyers, the process of purchasing a new home can be two entirely different experiences. Some find the prospect of a new home very exciting, and they relish in every minute of the process. For others, buying a new home adds some pressure, usually because they are unsure of what to expect or how to go about buying a home at the right time. There are good times and not-so-good times to buy a home, thanks to two types of markets in our economy.
Today, we're going to talk about the buyer's market.
What Is a Buyer's Market?
Ultimately, the best time to buy a new home — regardless of what type of buyer you are — is in what the industry calls "a buyer's market." This is an economic situation in which there's plenty of supply on the market with few buyers, creating a situation in which buyers have the upper hand.
Price Control
Owing to the principle of supply-and-demand, when there's plenty of supply on the market but not much demand, prices are very much under the control of the buyer. This is when we find the best opportunities to buy a home, as those selling are more inclined to accept a lower offer for their home. As a home buyer, an opportunity such as this allows you the largest gain over time as your equity grows faster.
No Rush
No Rush Due to fewer buyers on the horizon, your competition is also reduced. This means you can take a little more time to make a decision about which house to buy, as it's less likely to be scooped up from under your feet. That isn't to say, however, that the home will always be available. Another buyer may come along who falls in love with that home or that lot and makes an offer while you're still making a decision.
Extras
In a buyer's market, sellers are more likely to add in extras to entice buyers' interest. This might be a great opportunity to negotiate additional items in your home that you might not have asked for previously. You may be able to work in some upgrades you wouldn't have considered otherwise, or add on a deck, fence, or another item that would normally cost you extra once you've moved in.
Great Time to Invest
If you're interested in obtaining investment properties, a buyer's market is an ideal time to purchase these types of homes. Pricing will be ideal for making equity faster, and sellers will be more inclined to discount if you're purchasing more than one property at a time.
Selling Your Home
If it's currently a buyer's market and you know you'll need to sell your home, it's a good idea to have a chat with a Realtor or your home builder about how to set yourself up for the best possible selling position.
If you're building a new home and need to sell your old one, your home builder or an affiliated professional will likely be able to supply you with expert advice on timing, how to stage your home for sale, and how to price it correctly for a fast sale. Selling your current home first doesn't have to be your only option, either. Your builder's preferred lender can help you through the financial aspect of alternative routes.
A buyer's market can be both a great opportunity and a daunting situation. By working with the professionals, in any case, you'll be able to position yourself ideally for the best possible outcome.
What if the current market isn't a buyer's market? Naturally, it will likely be what's called a seller's market. Here's what you need to know about a seller's market.
