Buyers Market

Buyers Market

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  1. By now I am sure that you have heard that the current state of today’s real estate market is a “buyer’s market” but what exactly is a buyer’s market?  I am glad you asked. 

    Buyer’s Market

    The term “buyer’s market” is a term used to describe the current conditions of the real estate market and the collaboration of incentives that make this the perfect time for potential buyers to purchase homes.  Incentives include but are not limited to lower interest rates, first time homebuyer programs, foreclosures at greatly reduced pricing, short sales, and the ability to negotiate sales prices.  Particularly with foreclosures, buyers can purchase homes that at one time costs thousands and thousands more than they are currently listed for today.  This gives potential buyers the opportunity to purchase homes that they may not otherwise have been able to afford. 

    Number of Homes on the Market:

    Over the past couple of years the amount of homes for sale on the market has increased drastically.  The reasons for the inundation of homes on the market is being blamed on a variety of factors but the most popular reasons being publicized are foreclosures and short sales.  Foreclosures and short sale requests are most often due to the fact that one or more of the breadwinners of the home has lost their job, significantly decreasing income, rendering them unable to maintain paying the same mortgage amount.  When a homeowners requests a short sale, they must seek lender approval in order to sell short, which means the bank allows them to sell the home for less than they owe on their mortgage.  When a person from a one or two family household purchase a home and one of them loses their job, an immediate financial hardship occurs.  They are no longer able to afford the same things they were able to afford and when it comes right down to it, food and other necessities take. 

    Buyer’s Market In Closing:

    If you are a potential homebuyer wanting to take advantage of the market, an experienced broker or agent is a great start.  They can advise you on the process of purchasing a home, research and locate homes that meet your criteria, complete contracts and other documents for you, and offer assistance within the scope of their services by law.  A buyer’s market is just a term however the actual outcome of your transaction will vary depending on a lot of things to include whether or not you quality for a mortgage.  Your agent or broker will also be able to provide you with a list of lenders who may be able to assist you with your pre-qualification process.  It is always best to get pre-qualified for a mortgage prior to searching for your new home.  By doing this you will know what price range you should be looking in and saves both you and your agent or broker time in the long run.  Everyone wants to take advantage of the “buyer’s market” but remember that every transaction is different.  A buyer looking to purchase a foreclosure property will endure a different process than a person looking to purchase a short sale property.  A person looking to purchase a traditional sale property will have a different process than one looking to purchase a foreclosures process and so on. 

    Whatever your situation make sure you have the information you need concerning the property you want to purchase so that you can make an intelligent, informed decision.

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