Buying a Home during a Buyers’ Market
What is a buyers’ market?
In the Orange County Real Estate market, a buyers market means that there are a variety of factors that all come into play at the same time which favor the homebuyer including: available homes for sale, relatively low home prices and affordable mortgage interest rates.
Over the last few months we’ve seen a buyers market forming in Orange County. Home values haven’t risen as quickly as they had during the first half of 2013 and thanks to low mortgage interest rates, buyers are able to take advantage and purchase the home of their dreams.
The Right Approach
If you plan on buying a home during a buyers market, it’s important for you to know that even though the Real Estate Market is in your favor you have to do your “homework” before submitting an offer on a home.
Some of the things that you should do before submitting an offer are:
• Find out what other homes have sold for in the area recently so you know exactly what your offer should be.
• Search for homes that have been on the market for 30 days or longer. These sellers might be receptive at accepting a lower offer on their home than their asking price.
• Ask the seller to pay the closing costs.
• Make sure that you have a contingency in your home inspection that allows you to walk away if your home inspector submits a report to you that’s not to your satisfaction.
Cash In Those Extras
Another benefit of buying a home during a buyers market is that you will have more “leverage” than you normally would during a sellers market. For example: you can ask the seller to include a home warranty or protection plan that will cover you financially if the home has a plumbing malfunction or one of the homes appliances stops working.
You can also consider asking the seller to pay for certain areas of the home that you don’t like including: carpeting, flooring etc.
For more information on buying a home during a buyers’ market, or to view the latest Orange County homes for sale, contact Fred Sed & Associates today by calling us at (949) 272-0125.