The term 'buyer's market' is tossed around indiscriminately these days, but what does it mean to the average buyer out there? Well, we all know that it means that now is the prime time for buyers to be looking for a home, the reason being that there is a glut of homes on the market largely due to the foreclosure and economic crisis.
To the average buyer, especially first time buyers who do not have to sell in order to buy, it means that we are in the 'January sales' of the realty world. Since the mortgage interest rate has so far remained so low, it also means that it is the 'January sales' with bargain financing!
To some extent the sudden drop in the realty market has scared first-time buyers away - unless they have a parent or an older mentor advising them they 'have seen it all before'. Having 'seen it all before' gives the more mature buyer the confidence to go ahead and grab the bargains, knowing that the market always recovers.
Does the more experienced buyer know some things that first time buyers don't know? Probably so, and one of them would be how to search out the more likely bargains. Recent studies show that there are specific circumstances which may affect the size of the discount on a house price.
One of the ways is easy to pursue as long as you work with a real estate agent; of course this is a free service. If you work with a realtor, he or she will help you to sift through any properties which have been on the market for over two months.
By this time, the seller may be getting anxious and will be more open to accepting a lower offer on the property, or to leaving extra appliances in the property or even carrying some of the mortgage.
Obviously homes approaching a foreclosure and which are available as 'short sales' (pre-foreclosure) may be good value. The procedure for buying a short sale is different from the norm, but your realtor will be familiar with this.
Quite often, people who have owned their home for a long time, say over twenty years may be anxious to sell and get on with their life. They will have already accrued so much equity in the home that they may be in a financial position to accept a firm offer for less money.
The flip side of that may also work - buyers who were going to 'flip' homes and make a quick profit but misjudged the market. They may be ready to cut their losses and off load, so look for rental properties that are on the market.
Often 'fixer-uppers' are cheaper to buy and you can increase the realty value later by fixing it up at your own economic pace. There is also a lot of joy to be gained from using your own hands to create a wonderful home out of a bruised and battered house.
It also takes tolerance (with your own mistakes) and patience (the process is often slow due to lack of funds) but it is a very popular way of becoming a first-time home-owner!
Carolyn Capalbo is an expert military relocation specialist and real estate agent serving Northern Virginia real estate. Visit Just4Real.com to find updated market information about areas in Prince William, including Warrenton real estate.
