Buying Homes in a Buyer's Market

• DO YOUR HOMEWORK.
  If you are among the nearly 75% of all home buyers, you searched the web for communities, price ranges and homes on the market. You have a head start. Zeroing in on the area (or areas) that meet your needs will take some time and indecision out of the process.
• REQUEST CONTINGENCIES THAT MAKE SENSE.
  Sellers most often choose the contract with the fewest contingencies because of fewer reasons for it to fall through.
  
  FINANCING CONTINGENCY: Remove the financing contingency and put yourself into a more powerful buying position.
  
  HOME SALE CONTINGENCY: If you have a home to sell, the seller may accept it but will be less willing to negotiate price or offer other incentives. The seller will also want to know many things about your home: location, condition, how you are going to price it and your local market conditions (how long it might take to sell).
  
  KICK OUTS: The problem for a seller accepting a contract with a home sale contingency is they literally take their home "off the market" for a negotiated period of time. A good listing agent will request a "kick out" on the contingency. This means the seller can continue to accept other offers and if they receive one with better terms, you will be served a notice that you have a period of time (usually 48 hours) to remove your contingency. If you cannot, they can void your contract and accept the better one.
  
  A home sale contingency always interjects a level of uncertainty for both buyer and seller. So, if you have a home to sell, you can find ways to buy your next one without a home sale contingency.
  
  HOME INSPECTIONS: In any market, request a home inspection for the peace of mind of knowing what you are buying. If you don't like what you find, you can get out of the contract. See home inspection contingency) for more information.
• BE REASONABLE.
  With so little competition, you may think you can be unreasonable in your offer and use bullying tactics to get an unrealistically good deal. It won't work. Offending a seller will most likely cause them to NOT want to negotiate. Your agent should arm you with facts like recent comparables that can be used to negotiate. The objective is always to make the deal a "win-win." Nobody is happy in a "win-lose" or a "lose-lose" proposition. Being prepared will help you be in a position to act when you find the right home that meets your needs. Also, you need to watch the market closely and get timely updates of homes coming on the market. Our Watchgog™ capability will help you stay prepared to make your best offer on the best home.