The market is great for buyers right now. Interest rates are holding at levels unlikely to be repeated in years to come. Inventory is high giving buyers lots of choices. So, where have all the buyers gone? It's a mystery to real estate agents.
From the professional view, this is an excellent time to buy. Buyers have more ability to negotiate in this market because sellers don't have a lot of people vying for their house. Instead of buyers taking the advantage of this new market, they seem to be holding back. Four years ago when buyers had to pay more than the list price and compete in several multiple offer scenarios before successfully winning one house, the buyers were anxious to buy. Now when the market is in the buyers' favor, they're hanging back hiding in the woods. No longer is the reckless and competitive auction mentality present. Caution seems to be the operating theme at a time when caution is unnecessary.
Realogy, the parent company for Coldwell Banker, Century 21, ERA, Sotheby's, and Corcoran Group Real Estate, is taking a proactive stance to convince buyers to buy. This full page ad was placed in USA Today by Realogy to alert buyers that it is a great time to buy. All ads are about drumming up business, but this ad tells a basic truth: now is a good time to buy. Because the press has been so skewed toward the bad news for sellers, buyers have missed the "buy now" message that complements the sellers' struggle. RISMedia CEO & Publisher John Featherston says, “Today’s real estate market is full of opportunity for both consumers and real estate professionals, and it is our collective responsibility to disseminate the facts about the market in the face of negative media hype." Did you see the word "opportunity"?
Did you hear the message? Buy now! Interest rates are low and inventory is high! Get a good real estate agent and negotiate the deal of your life! Buy now!
Viking, Thanks for stopping by. I would recommend you consult with your REALTOR directly as s/he will be familiar with the specifics of your situation. It's easy for me to be an armchair quarterback, but in real estate, it's wisest to speak with a professional who is familiar with your transaction.
Posted by: Bonnie Erickson | October 29, 2006 at 01:59 PM
I am interested in a property in the Wright County area and the sellers are asking $720k. I can handle the 20% down and I believe I can negotiate the owners down to $690. However, at that price, they are still getting a 7% year-over-year increase (2005 vs. 2006)on comparable homes in the market. I have read that home values might decline. Since I will stay for 5-7 years, I am okay with a quarter or two of price declines as long as we get back to the more typcial 10% per year gains we have seen. Should I insist that I get a price on par with the 2005 peak values or is a 7% markup justified?
Posted by: Viking | October 27, 2006 at 03:08 PM