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TIPS ON BUYING A HOME IN A BUYER’S MARKET

TIPS ON BUYING A HOME IN A BUYER’S MARKET

THE ART OF THE DEAL: TIPS ON BUYING A HOME IN A BUYER’S MARKET
— When is the best time to buy a house? With most estate agents reporting an abundance of homes for sale, and interest rates remaining static and low by historic standards, now might be one of the best times in recent memory to buy. While today’s property market does offer advantages to buyers, consumers still need to be savvy in order to get the best deal they can.

Following are some things that the professionals at Coldwell Banker Ireland think every homebuyer should keep in mind:

Don’t Try to Time the Market: When home prices have fallen against record prices, it is very tempting for potential buyers to sit back and wait in the hope that prices will decline even further. This strategy can be detrimental and even result in you loosing the home or paying a higher price than you may have had to. Once a home is priced to what the current market will bear, buyers will make offers. It is best to make an offer based upon the prices at which similar homes in the market are selling for. In a buyer’s market, there are more opportunities for negotiations, but making an offer is an important step. If you find a house that really suits your needs, put your bid in and negotiate. Don’t let it sit for another buyer to make an offer with the result that you loose your opportunity.

Homes Are Selling: Don’t think you are the only one looking for a new home. Properly priced homes are selling. Coldwell Banker predicts there will be more than 100,000 home sales in 2008, expected to be the third-best year in our history. Our research has revealed that a majority of people move based on lifestyle changes, such as new job / promotion, marriage, divorce or family expansion. Each of these are increasing in Irish society.

Greater Affordability: Various influences have come together to make homes now more affordable than ever. While it is true that mortgage rates have indeed risen over the past year, increased mortgage relief for all and significantly increased relief for first time buyers has eased the pain of interest rate increases. Mortgage rates are still historically low, hovering around 5.25% and look to have stabilized. While loan companies have become more strategic as to whom they will offer loans, there is certainly financing available for people across many income levels and a great deal of flexibility in how financing can be structured.

The recent abolishing of stamp duty for all first time buyers and the downward adjusted rates for all buyers has increased affordability.

However the biggest influence on affordability has been the correction in house prices by between 10% and 20% in many markets. This correction coupled with rising rents (up 10% nationally in 2007) has seen a significant recent increase in investor activity. We have also recently logged a take up in viewings in first time buyers who now find that home ownership is more affordable than their present rental out goings.

Negotiate on Incentives: Sellers eager to move their homes may offer you a variety of incentives such as paying the service charge in an apartment complex for 12 months or paying a portion of the stamp duty. If you accept an incentive, make sure it makes sense for you. Instead of having your bills paid, you may opt to have the seller renovate the master bathroom or install new flooring. Of course, you can always ask the seller to just reduce the asking price.

Where is the Housing Market Headed? No one can truly predict, but I firmly believe the property market remains well positioned for 2008. There are peaks and valleys in any market and the property market is no exception. A correction was likely and welcomed after 12 years of price appreciation. Home ownership is still one of the centerpieces of the Irish condition with ownership rates of over 75%, the 2nd highest in the OECD, and there are some interesting demographic trends that point to a rebound in the market.

“Baby Boomers” (ages 44-62) are in their prime property buying years and have accumulated wealth through equity in their homes, investments, inheritances, etc.
Many of our recent immigrants are putting down roots and are gaining in home ownership.
With the fundamentals of the economy still relatively sound “Echo Boomers” or “millennials” will likely have a similar economic impact in the coming years that baby boomers did. Echo Boomers (aged under 30) are already active in the property market, particularly the starter market.

Remember, a home is to live in and not a trading commodity. Only the very lucky few manage to by at the very bottom of the market. As soon as a market reaches the bottom it usually bounces again. I believe we are at or within a hairs breadth of the bottom. It is now time to look seriously at the residential property market again. If you find the home that suits your needs and you can afford it then make an offer, negotiate hard and buy it or you will always have that “if only” remorse.

Article Source: Real EstateTips from top notch experts

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