Benefit from the Growing Buyers' Market

By Jonathan Haeber
CMR Columnist

Certainly, the real estate boom has softened. No longer are we seeing double-digit appreciation in some locales. In some places, price appreciation is barely outpacing inflation. However, there is some good news in this cooling market. Soon, it will be a buyer's market, and as a California home buyer, you have a lot more bargaining power.

"We just got spoiled over the last few years with what is proving to be an 'abnormality' in housing appreciation," says Ron Luna of Front Street Realty. "Housing values aren't really going downhill; it's just that this market forces sellers to be more realistic about their asking prices."

And inventory is showing signs of such a softening. In Ladera, a suburb of San Diego, there are 354 homes listed for sale. In January, there were only 198 listings. Luna said it could rise to 400 by June.

More Listings Leads to Great Selection, Lower Prices

The rise in listings reflects the desperation of sellers to get top dollar for their homes. Luna says sellers' are expecting too much because they expect double-digit price increases. What this means to buyers is that they don't need to accept the prices. They can bid the prices down, and sellers are more willing to negotiate after a home has been on the market for a month or more.

Home developers are getting smart to the market; they are now offering free upgrades and reduced closing-cost fees. Mortgage brokers are also more willing to bring down loan fees and mortgage interest rates without paying points; they're doing this because they see mortgage applications slowing in pace countrywide and want your mortgage loan business.

Take Advantage of the Buyers' Market

In all, if you're a California home buyer, now is the time to get a feel for the market. Know an acceptable price for a home, and don't be willing to offer more than what you think the home is worth. Chances are, with the right bargaining savvy and knowledge of the current market, you can take advantage of the hot market for buyers.

Source
Orange County Register: Whose Market is it Anyway?

About the Author
Jonathan Haeber is a marketing writer for Discovery Channel Stores. He recently purchased his first home and took a self-taught crash course in home mortgages.

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