Are You Hunting for a Deal?
Are you one of the many buyers hunting for a deal in this market? I don’t mean that you are looking for a good value…a home you would like to live in at a price you think is fair and reasonable. I am referring to the kind of buyer who wants “the deal of the century.”
It is common in a buyer’s market to find buyers who believe they can make a low-ball offer on a property and secure a fabulous deal. After all, homes are not selling quickly, and if sellers want to sell won’t they be willing to agree? We tend to see lots of low-ball offers in this kind of market, but rarely do they get anywhere. Sellers want to get as much for their homes as possible, and certainly don’t want to sell for less than market value, or sell for less than what they paid for it, unless they are in a desperate situation.
Some buyers seem to feel that this is the kind of market where they CAN get a terrific deal. But of course there is lots of competition for those deals too, so the reality is they just don’t happen, except in very unusual circumstances. The most likely place for these types of deals may be auctions, but you still have competition and there are risks inherant in the process.
And even in the case of foreclosures or short sales you still have to get the bank to agree on the price, and they will have an appraisal done. So it is unlikley you will get the home for much less that fair market value and you will have other deal hunters competing with you…and there may be lots of repairs and cosmetics you will have to deal with.
This is NOT to say you should not try to pay less than asking price, particularly if a home is overpriced, and pay what is fair value for the market for comparable homes. No one wants to overpay, especially in a market where prices may be changing. But to expect you can pay 10 to 20% below market, or less, is probably not reasonable and will likely lead to frustration.
So if you ARE a bargain hunter, hunt away. But if you are serious about getting a good value, do your research and work with an agent who can help you determine what home is right for you, at a price that makes sense, for you AND the seller. Good luck!