How to Get a Deal in Todays Buyers Market
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How to Get a Deal in Todays Buyers Market
Buy Low Sell High
Are YOU Waiting for the Bottom of the Market?
If you are one of the many awaiting the absolute bottom of the market to buy Long Beach Homes or Condos, it may cost you money to do so. With this in mind I prepared the above graph to assist in explaining a few critical points.
In a buyers market the buyer has the power in negotiating the deal. Aware that the market is on the decline, resulting in more inventory than available properties, the buyer can ask for and receive many seller concessions. Sellers willingly make concessions to get the property sold. Buyers can negotiate many items to sweeten an already good deal. In a buyers market most sellers are very happy just to receive an offer.
In a sellers market the seller has the power in negotiating the deal. Aware that the market is on the incline, coupled with more buyers than inventory available, the seller can raise the price and offer little or no concessions to the buyers desperate to find available housing. In a sellers market buyers often find themselves in a multiple offer situation, negotiating upwards to acquire a property and are generally very happy just to get an offer accepted.
Few will actually purchase at the actual Bottom of the Real Estate Market. Smart buyers will purchase on the way down for the best deals. (See A-B) At this point in the evolution of the market, sellers will be at their most giving and prices will be at record lows. It is here that many Long Beach Buyers are going to find the very best deals.
Example: A Long Beach Home available in 2005 for $800,000, listed today at $650,000, sitting on the market for 100+ days, may be purchased with an offer of $625,000 less a negotiatied 3% in closing costs of $18,750 for a net purchase of $606,250; a very good deal for the buyer indeed. (See A-B on graph)
A few lucky buyers will actually purchase at the absolute bottom of the market, with maximum seller concessions. As the market begins to level out and turn slowly upward there will be some fantastic deals available. Sellers will be less generous with concessions even though prices at
| Laurie MannyLong Beach Realtor (562) 212-5420 |
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Main Street Realtors Belmont Heights 244 Redondo Avenue Long Beach California 90803 |
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· http://beachcityrealestateinfo.blogspot.comI've always found it interesting that while most buyers are waiting for the bottom of the market.. they rarely realize when the bottom occurs. There are no big media headlines that say "Buy now.. this is the bottom of the market".. in fact the bottom usually occurs about the time the media tells us the worst is yet to come.
Your market has been down for quite awhile and seems to have reached the place where it is definitely the best priced ocean front property in LA and Orange Counties.. I would suspect that if rates continue to stay level you will see investors beginning to come back into the market.
Permalink November 22, 2007 11:42:00 · http://www.longbeachrealestatehome.comI suspect that many of today's would be buyers will still be waiting for the bottom of the market long after prices are on the incline, just like the sellers who were still waiting for the top of the market a year after the market began to drop. The real losers will be 1st time home buyers who can actually afford to purchase now and will wait and miss this incredible opportunity to become a homeowner.
Investors are beginning to enter the market here already. As prices drop a little more they will be out in droves.
Permalink November 22, 2007 20:00:15 · http://www.buffaloniagararealestatehomesales.com
Laurie: What a great article about waiting for the bottom of the market.
Permalink April 29, 2008 14:22:00 · http://www.longbeachrealestatehome.comPermalink April 30, 2008 06:17:18This post has no comments awaiting moderation.
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