Buyers always want to have the upper hand when it comes to purchasing a property or at least getting an offer accepted. In a buyers market, the homebuyers definitely have the upper hand. This means there are plenty of properties on the market and prices are relatively low. In a seller’s market, there are plenty of buyers and very few homes, which means sellers can up the price of their property and get more eyes on their home. But how can homebuyers harness the power in a buyers market?
There are several steps to organizing your home buying power position before actually looking at property.
#1. Organize your finances.
Before looking at homes it’s important to understand how much you can actually afford in a monthly mortgage payment. Remember, that payment should include property taxes and maybe homeowner’s insurance as well. A $1000 mortgage can easily bump up to $1500 with these added fees, taxes, and potential homeowner association fees. Understanding how much you’ll be paying each month in a monthly mortgage payment plus general upkeep, you can attack the real estate market with a little more confidence and preparedness
#2. Consider up and coming neighborhoods.
An up-and-coming neighborhood is one that may have gotten a bad reputation in the past but could be turning itself around. You might see a lot of major renovation going on throughout the community and it has close proximity to other higher-end neighborhoods. Ask local stores and restaurant owners of prices have gone up in the last couple of years and if there’s a lot of young people, artists, and musicians in the area, chances are it’s on its way up. But, you can buy now and be ahead of the game later on when property values really increase.
#3. Be patient.
Finding the right home does take some know-how, knowledge, the right real estate agent, and a whole lot of patients. It’s okay to make a lowball offer but if you don’t get the counter offer you had in mind, simply be patient and perhaps wait it out. A seller can change their mind and come back to the buyer’s agent asking for another offer. Don’t be afraid to walk away because it’s sellers know that you are extremely motivated to buy their home, they’re not going to budge on price or terms.
#4. Mind your manners.
This is a very elementary thing but agents take careful note of customers who view properties and polite and respectful behavior can go a long way. Even if you’re only dealing with a buyers agent, that buyers agent wants to work the best for you and being polite and courteous along the way can really work wonders. They may offer extra tips, work extra hard, or put in those extra late-night hours simply to get you the exact terms and price you want. A little “please” and “Thank you’s” really can work wonders.
#5. Penny wise, pound foolish.
Try not to get so focused on getting every aspect of the deal exactly the way you want it because you tend to lose the big picture. If you are nickel and dining the seller to death they may throw their hands up and reject everything. A good rule of thumb to remember in the home inspection report is if you ask for everything you’re likely to get nothing so run over the mandatory items and deal breakers with your real estate agent and pick and choose your battles so that everyone gets a win-win in the end.
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