The real estate market is constantly cycling between a buyer’s and seller’s market, based on inventory levels and consumer demand. Several factors can help you identify what type of market you’re in, but it is always advisable to check with your realtor for further insight on current trends.
With that in mind, check out these helpful tips for you to capitalize on a favorable economic environment and adopt the right homebuying strategy:
Understand What A Buyer’s Market Really Means
A buyer’s market occurs when housing supply outpaces demand. Essentially, there’s more inventory, less competition, and the potential for better deals. Homes stay on the market longer, sellers become more flexible and willing to accept a lower price and even help pay your fees.
Get Pre-Approved And Know Your Budget
Even in a buyer’s market, it’s important to be prepared. Getting pre-approved for a mortgage not only clarifies your budget but also tells sellers that you’re serious. With AmeriHome’s streamlined pre-approval process, you can house hunt with confidence and move quickly when the right home comes along.
Put In A Competitive, But Reasonable Offer
When demand outpaces supply, buyers sometimes offer above asking price to stand out and bidding wars are a common occurrence. Fortunately, that’s rarely the case in a buyer’s market. With more homes available and less competition, buyers have the flexibility to take their time, negotiate more confidently, and potentially secure better and more reasonable terms.
Get An Inspection
In a competitive market, buyers often resort to waiving inspections to win bids. However, in a buyer’s market, it’s better to take your time and utilize the tools available to you in the homebuying process. A thorough and complete inspection of a prospective home can uncover issues that may lead to price reductions or seller-paid repairs. It’s your opportunity to ensure the home is worthy of your investment. Take advantage!
Negotiate Beyond The Price
It’s not just about the sticker price. In a buyer’s market, sellers may be more open to covering closing costs, including home warranties, or even buying down your mortgage rate – which are concessions. These concessions can save you thousands and make your monthly payments more manageable.
Be Patient, But Ready to Act
While you have more breathing room in a buyer’s market, great homes still move fast. Stay alert, work closely with your real estate agent, and be ready to make a strong offer when the right opportunity arises.
Explore Multiple Neighborhoods
In a buyer’s market, you’re not limited to one zip code. With more inventory available, it’s worth exploring nearby neighborhoods that may offer better value or amenities. You might find a hidden gem that wasn’t initially on your radar.
Consider Homes That Need A Little Work
With less competition, homes that need minor updates or cosmetic fixes can be a smart buy. Sellers may be more willing to negotiate based on the condition of the property, and you can often build equity quickly with a few improvements to the home. Just make sure your inspection doesn’t reveal major issues.
A buyer’s market is your chance to take control of the homebuying process. With the right preparation and a trusted mortgage partner like AmeriHome Mortgage, you can turn market conditions into a major advantage.
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*As a member of the AmeriHome family, borrowers are part of the AmeriPurchase+ program and qualify for a $750 lender credit for all of your home purchases done with AmeriHome, for any property you own. Credits will be applied only if your loan closes with AmeriHome. This offer can not be combined with any other offers and is not applicable for FHA Streamline, or VA IRRRL Refinance transactions. Other restrictions may apply. Terms and conditions are subject to change. The AmeriPurchase+ program is subject to termination without notice.
