As we all know by now, buyers have full advantage in this market. Multiple offers and people standing in line for raffle tickets for their homes are a thing of the past. For now. Find out more about your Bloomington Homes for sale.
Investors and buyers have taken to the backburner and competition continues to dwindle. This kind of market downturn allows you for perks that buyers haven’t seen in YEARS.
Do you know what kind of shape your Bloomington market is in? Real estate is closely tied to employment, as the economists believe.
Here are 10 things buyers need to know to negotiate the best deal in a market shifting to their favor:
1. WE are actually the biggest problem in overcoming a changing market. Prices can drop a couple of percentage points and its astounding just how different buyers and sellers react. Sellers of course thing their house is worth more than what it actually is. After all, it’s hard to accept that your “special” house that you have put your heart and soul into could be worth much less than what you paid for it. Buyers think every house is about to be foreclosed upon and make insanely low offers. As a smart buyer, you need to know what kind of size you are looking for, how much you can afford, and negotiate fairly.
2. KNOW your market. See what’s going on in your neighborhood. Look at the comparables and see what similar sales are going for in the area. Sellers know what the last comparable sold for. You want them to at least consider your offer.
3. KNOW your seller. Find out what you can about them. Why are they moving out of Bloomington ? Divorce? Job? Retirement? Empty nest? If you know why the seller is moving, it just could mean a better deal on your next home.
4. Multiple Listing Service (MLS) properties usually state what the seller owes. If not, your agent should be able to track down the figures. There’s a big difference in negotiating with an owner who owes more than the house is worth and one who has a lot of built-up equity.
5. After 45-60 days, the seller is SICK and TIRED of having people trapce through their house and keeping it spotless at all hours for potential buyers.
This is when a seller may be the most anxious about selling their house as traffic to their house has likely fallen sharply.
6. Unless you’re incredibly handy and have time and cash, go after houses that are as updated as you can afford. This is easier to do in a stagnant or falling market and fixers aren’t usually discounted enough to be worthwhile. Sure, it’s easy to throw on some new carpet and paint, but do you really want to deal with an entire new roof?
7. In a tighter market, it’s not too much to ask the seller to add the closing costs to the price of the house. It’s better to put 20 percent down and add the closing costs to the loan than put 15 percent down and pay the costs upfront.
8. Items to ask for that shouldn’t offend sellers are paying for new kitchen appliances or washer and dryer. Most sellers will be willing to do so to close the deal. You can even ask the seller to pay the first year of homeowner’s association dues. Can’t hurt to ask!
9. Don’t request anything that requires quality workmanship. Don’t ask the sellers to paint. They won’t paint the way you want anyways. Be reasonable about what you ask for. Their house is already going for a STEAL- don’t ask for the entire farm, so to speak.
10. LOOK at the big picture. . In changing markets you should be planning to stay for at least five years, so don’t get caught up in a $2,000 price difference. Remember, the goal is to get the house you want to live in for some time, not to impress friends with how you worked the previous owner.
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