What is Buyers Market In Real Estate and How To Navigate It Successfully

How to thrive in a buyers market in real estate – Strategies for success

The economics of supply and demand largely govern real estate. If you wish to navigate the fickle world of real estate successfully, it is important to understand how supply and demand impact the value of homes. You may have heard the term ‘buyer’s market’ in real estate but are unsure what it means. Let us understand the buyer’s market and how to survive it successfully.

What is the Buyer’s Market?

• A buyer’s market is a market condition characterized by a surplus of homes, but there’s a shortage of interested buyers. Hence, an imbalance between the supply and demand of homes occurs. These market conditions generally favor buyers and give them leverage over sellers. Due to the abundance of homes available in the market, buyers have a variety of homes to choose from, and even if they bid low, sellers usually oblige.

Things can get tough for sellers in a buyer’s market. Their home may stay on the market for an extended time because buyers have too many options to choose from. Or they may receive offers far below their asking price, resulting in considerable loss. However, these tips can help you survive the buyer’s market and make the best of the situation. So read on.

Pay for Closing Costs

• The key to successfully navigating the buyer’s market is to incentivize the buyer without unnecessarily compromising. One way to solidify the deal is by sharing the financial burden of closing costs. Most closing costs include origination and underwriting fees , taxes, insurance premiums, title and record filings, etc.

Closing costs require upfront money. Sharing the closing costs is a generous offer on the seller’s part, and the buyer is unlikely to let go of this opportunity. If negotiations for the pricing of the home reach a deadlock and you anticipate losing a potential buyer, then offering to pay the closing costs will help resolve the impasse.

Understand The Needs of The Buyer

• In a buyer’s market, landing a serious buyer who is willing to offer a good price for your home requires considerable effort. To move things in the right direction, it is important to understand the buyer’s needs, his psyche, and what he desires the most.

For example, if your buyer is a first-time homeowner, you can offer major working appliances as a part of the deal. This will save them considerable money and the hassle of buying and fitting new appliances. The buyer will find it impossible to turn down such a good deal.

• Sometimes, time is of greater essence than money, and buyers are looking for a home that can accommodate their moving-in schedule. If the buyer wants to move in before the start of the next school year, align your moving-out schedule with their moving-in schedule. A buyer with a tight deadline will appreciate this flexibility and likely pay a good price for your home.

Don’t Let The Negotiations Come To A Halt

• In a buyer’s market, sellers can’t be too picky. You will receive limited offers, and you must pursue them all. When dealing with a serious buyer, don’t let the negotiations end; keep them going. Incentivize and coax the buyer as much as you can. By keeping the talks open, you have a chance to sell your home for a fair price. In a buyer’s market, the seller should not be the one walking away from the negotiations. Persistence is the key.

Looking for a trustworthy realtor in Morris County? Contact Jackie Scura. We are an experienced team of real estate professionals who provide expert guidance and support throughout the home-selling process. Call us at 973-319-8334 for more information.