You can find a good house at a bargain in a buyer's market, but only if you know when and how to look. Those who don't know how to navigate the market will still buy houses at high prices. The following tips can help you land a bargain in a buyer's market.
Track Price Reductions
Few property sellers list their properties at low prices right from the start. However, in a buyer's market, the reality on the ground usually forces sellers to reduce their prices. Therefore, don't just focus on new listings. Instead, watch out for properties that have been on the market for a while and have dropped in price.
Register for MLS Updates
The properties you see on MLS (Multiple Listing Services) are not the only properties for sale at any given time. Some of those sites also contain expired or sold properties that are due for removal. Your real estate agent should register you for MLS updates so that you are among the first to receive fresh listings.
Every buyer is on the hunt for a bargain in a buyer's market. You can easily miss a good deal if you aren't prepared. Take these tips to prepare for a quick purchase:
- Get a mortgage preapproval
- Have all documents ready
- Get the contact of a property inspector you can use
- Get the contacts of an insurance agent
Thorough preparation proves your readiness to the seller. In some cases, that might even strengthen your bid more than an improved offer would.
Watch Out for Bidding Wars
The risk of a bidding war is low in a buyer's market, but it is still possible. Unique, attractive, and heavily marketed properties can still trigger bidding wars.
You can easily overpay for a house in a bidding war. You might get to a point where it is more important for you to win than to pay a reasonable price. Don't be afraid to walk away from a deal if you can't avoid a bidding war.
Both home sellers and their agents have extra motivation to sell during a buyer's market. Take advantage of their motivation to bargain hard. Don't just bargain on the price. Bargain on other issues, including closing costs, repairs, and concessions, among others.
Hopefully, the above tips will help you find your dream home without overpaying for it. A real estate company, such as Lake Cumberland Real Estate Professionals, can also help you find bargain properties.