The real estate market of 2009 is what is commonly referred to as a "buyer's market". This term refers to the fact that the inventory of homes for sale is high and there are more available homes than there are potential buyers for them. This puts more of the negotiating power into the hands of the buyers as they have plenty of options to choose from. The following are some tips for buying a home in a buyer's market.
Tip #1-Be prepared to negotiate a bit. This can be assisted by a real estate agent that you enlist to work with you and on your behalf. You want to get the best price possible and remember, it is the seller that typically pays the realtors involved out of the proceeds from the home at closing, so you are out no money yet you gain the experience of a professional working on your side.
Tip #2-Don't think you are going to get a "steal" just because you heard that someone else did! It is a buyer's market, but that doesn't mean that sellers are going to accept ridiculously low offers. You may shoot yourself in the foot, so to speak, by making one of these offers. If a seller is insulted by your lowball offer, they may reject it with no counter-offer at all. You have then lost a property that you really wanted. Keep offers reasonable, even if a bit on the low side.
Tip #3-Have your financing in order. You are more likely to save money if the seller sees that you have your ducks in a row and can close the deal promptly. The sooner the closing, the less mortgage payments the seller will have to make. Set up a meeting with a mortgage broker prior to beginning your search so that you know what you qualify for as well as if there is anything you need to do prior to getting the loan approval.
Tip #4-Don't forget to look into homes that are "for sale by owner", even if you have an agent. There are some people who are selling their homes without their own representation who will still agree to pay the realtor's cost for your side. Have your agent contact them to see if this is the case.
A buyer's market is a great time to buy a home if you are prepared to work with sellers reasonably. Having an agent in your corner is beneficial as they will be able to present negotiations and work with either the seller or the seller's agent to get you the best deal possible. Whether you go it alone or have a professional working for you and with you, good luck in your search for your new dream home!