| DOES THE CURRENT HOME SELLING MARKET | | | | will have little room for negotiation when lookingto |
| FAVOR BUYERS OR | | | | buy a house that is located in a seller's market. Also, |
| SELLER? | | | | you are going to havemake decisions quickly. You |
| When in the market for buying a new home, there | | | | definitely do not want to lose a house that you |
| are two main factors thatinfluence the value of | | | | areinterested in by playing games over the price. |
| homes you are interested in purchasing. The first | | | | In a seller's market, it is very common for multiple |
| beingthe fair market value of the home. The second | | | | offers tobe made on a house at the same. Often, |
| is whether or not the area thehouse is located in is a | | | | the highest price will be accepted, withno negotiations |
| seller's or a buyer's market. | | | | taking place. However, it is typical for a seller to try |
| Calculating what the fair market value of a home is | | | | and getthe most money for their home by |
| stillimportant and very much necessary. However, it is | | | | negotiating with all potential buyers at thesame time. |
| critical to note that theresults are only estimates, | | | | This is called a bidding war. If this is the case, you |
| based on home sales from at least six months ago. | | | | can utilizethe following tactics. Firstly, never let your |
| Agreat deal can change in six months; resulting in the | | | | emotions get the best of you byplacing a bid higher |
| market shifting fromfavoring a buyer's, to a seller's, | | | | than what you want to spend. |
| and vice versa. | | | | Second, be certain that youhave already been |
| Buyer's Markets | | | | approved for your mortgage financing. Sellers will |
| A soft market is going to favor the home buyers. | | | | take youmore seriously knowing your loan ready for |
| This type of market can bea result of several | | | | buying. Lastly, never ask for anyextras when trying |
| different variables. For example, there may be many | | | | to close the deal. For example, don't ask for any |
| housesfor sale in the area, the economy may be | | | | appliancesand/or furniture to be included in the sale. |
| bad, etc.. A soft market may result ina house being | | | | Another smart thing to do is toinform that seller that |
| on the market for a long period of time. Therefore, | | | | you are extremely flexible in regards to when they |
| buyers willhave the upper hand, allowing them to | | | | wantto close. |
| make a purchase at a price that issubstantially less | | | | In conclusion.... |
| than what the seller is asking. It is also very likely | | | | It is crucial that you determine what market type an |
| thatthey will have the opportunity to pace the entire | | | | area is as soon as youdetermine that you are |
| sale process at their ownpace, closing when it is | | | | interested in a house. If you wait, and it is a |
| convenient for them. | | | | seller'smarket, there is a good chance that the house |
| Seller's Markets | | | | you like will be sold to someoneelse, quickly. |
| This type of market is a result of many people | | | | However, if you neglect to determine that a |
| wanting to move to an areathat does not have a | | | | particular area islocated in a buyer's market, you will |
| great deal of homes for sale. As a result homes are | | | | likely end up paying more for your homethan you |
| goingto be sold fairly quickly for the asking prices, or | | | | should. |
| a price very close to theasking price. Therefore, you | | | | |