Reasons to Buy in a Down MarketJul 29th, 2007 | By Bea Weiss, Real Estate Consultant, Attorney | Category: Blog, Buyer Advise
Even in a down market, people are still selling property. In fact, the inventory of homes in our area is greater than ever.
Because of the great amount of inventory, there is more pressure for the seller to accept your offer. The sellers have to compete, which leads to lower prices. Check how long the home has been on the market. The longer it was on the market, the more likely the seller will be willing to negotiate. Other benefits sellers may offer could include buyer bonuses, e.g. seller paid closing costs or vacation getaways.
Chance to Trade up
In a down market you may afford the home you always dreamed of. Even if you sell and buy simultaneously, you’ll still be ahead of the game because the price reduction on the purchase is greater than the loss on the sale. Say you have to reduce the price on your $300,000 home by 10 % to get it sold, that´s a loss of $30,000, right? But if you buy a $500,000 home and negotiate a price reduction of the same 10 %, you´ll end up with $20,000 in savings!