Many are
pessimistic about the issues surrounding
a soft housing market. It all depends on
how you look at it. If you take
advantage of it, a softer housing market
can work for you as a buyer in ways that
are impossible in other times. When it
is a buyer's market, buyers have
advantages. If you have thought of
getting into the investment market, or
getting started with the American Dream
of owning the home you've always wanted,
a buyer's market is the ideal time. Such
a market puts you in a great negotiating
position like no other market state can
do. There is no need to settle for less
than everything your heart desires
(within reason), and there is no need to
settle on a price point that is out of
your range. It is possible to get both
since sellers are even more motivated to
sell than ever. If you think a home is
priced too high and doubt you could
afford it, and doubt the seller will
budge to the point that meets your
budget needs, during a soft market that
may not be the case. With the right
agent at your side, you'd be surprised
the value you can land for less than you
would expect.
Taking
Advantage of a Soft Housing Market as
Buyer
When
there are more sellers than buyers, the
inventory of new homes is high, but it
won't be that way forever. As the market
improves, the window of time narrows
during which you can easily jump into
the American Dream of having the perfect
home for you and your family or making
the jump into investing and resale.
During a
soft market, why not take the
opportunity to invest in an additional
home to "flip" (remodel and resell) or
to rent out. Or why not take the
opportunity to be increasingly
particular in what you are looking for
in a home for you and your family. Want
more square footage? You got it! Want a
recreation room, a pool, a two-car
garage? You got it! Want a particular
area that's convenient to expressways or
work? You got it! Can't live without a
fireplace or finished basement? You got
'em!
You have
to struggle between raising your budget
and lowering your expectations! If you
take advantage of a soft market, it can
work for you as a buyer.
Taking
Advantage of a Soft Housing Market as
Seller
Although
a soft housing market is inherently a
buyer's market, sellers can still make
such a time period work to their
advantage. Again, invest in homes,
"flip" them and resell them. Suddenly,
you are selling homes for much less than
you invested, while being able to
remodel them for much less than the
amount you are making. And if you're
willing to wait it out, you can buy
while the market is soft, flip the house
(or houses) and see huge returns if you
sell after the market improves.
Knowing
the mindset of buyers during a soft
market can also allow you to rethink
your position as a seller. Become more
malleable and willing to cater to your
buyers' needs. Add incentives and throw
things into the deal that might not
normally be included. You can do this
without losing much while enticing the
buyers that you are aware of their
strong position. It is possible to
prosper as an astute seller during a
soft market, if you are tenacious and
diligent about your approach. Think
smart and you'll be surprised that it's
not so bad after all.
