September 3, 2024
The real estate market is typically in flux, thanks to various factors. In a given week, month, or year, you may encounter market conditions more favorable to you as a buyer or to the seller.
When assessing the current real estate market dynamics, learn whether the county you want to buy a home in is a buyer’s market, seller’s market, or balanced market.
The nature of the market is typically determined by some variables, including the supply of homes compared to the demand. In a buyer’s market, more homes are available than buyers, giving buyers more negotiating power.
In a seller’s market, there are more buyers than homes available. That provides sellers with the advantage. Neither side has a significant advantage in a balanced market because conditions are more “neutral” regarding price and demand.
Understanding those market dynamics and what is at play when you search for housing is crucial. Don’t start the home-buying process without knowing if you’re in a market that favors you as a buyer.
What To Remember In A Seller’s Market
In a seller’s market, thanks to the elevated demand for homes, sellers often have the upper hand in negotiations. On the other hand, a buyer’s market offers more opportunities for buyers due to a larger inventory of homes.
Before making offers, assess your financial situation and get pre-approved for a mortgage. This will give you a clear idea of your budget and strengthen your position as a serious buyer.
Knowing your finances well means knowing how much you can realistically afford to offer when house hunting and how much earnest money you can use to get the transaction moving. When you find a house that meets your budget and that you are truly serious about owning, it’s time to make the seller an offer.
What Your Offer Should Include
When trying to buy a home with an FHA loan, your offer should include the details on the proposed purchase price and the amount of your earnest money deposit, and it pays to make your offer more tempting to the seller with incentives.
What kind? Giving the seller more options with the closing date, agreeing to pay for specific required corrections or repairs, etc.
After you submit your offer, the seller may accept, reject, or counteroffer. In cases where there’s a counteroffer, you can choose to accept, reject, or continue negotiating.
Once you reach an agreement, the process moves forward with finalizing the mortgage, conducting a title search, and signing the closing documents.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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