REAL ESTATE
by Jim Coleman, REALTOR®
BUYERS MARKET IS HARD ON SELLERS
This column has made mention in the last couple of articles that now is actually a good time to buy. Not only is the inventory wide, but financing options are ample for those who have good qualifying conditions.
As buyers position themselves to take advantage of current market conditions which generally favor the buyer side of the venture, there are a few basic and common events that are present and recurring bringing a purchase to the benefit of the buyer. Obviously, the stronger the buyer's financial condition, then stronger the buyer's bargaining ability. In the buyer's market, it is important to keep up-to-date on price adjustments. Right now, there are some large cuts in pricing on select properties.
It is also important to shop around for mortgage terms that are not only competitive, but advantageous to your position. When offers are made today, it is quite common to see various contingencies in the offer beneficial to the buyer. Often, sellers are asked to contribute money toward buyer's closing costs or fees.
Buyers' offers now typically have a short time period for acceptance. The offer also asks for the seller to provide inspections and home warranties at the seller's expense. It is quite common that a buyer will have a certain price in mind that when in the process of negotiating the offer and counter offers, if that price is not met by the seller, the buyer will walk away from the process and leave the seller wondering "where did the buyer go?"
Sellers working through the buyer's market must be realistic with the market conditions, especially the valuation aspect of the process, if the seller hopes to see a sale that shows any favor toward the seller. Appraisals are coming in quite conservative. The property must be in good market condition, dressed for market show, and priced to get the purchase nod, or the seller's property will stay on the shelf. And in our current conditions, it may be there for some time.
St. George REALTOR® Jim Coleman is Associate Broker and Partner/Owner of ERA Brokers Consolidated. He works with Buyers and Sellers and Specializes in Residential, Investment and Commercial Real Estate, including Resort and Second Home properties. He holds National Designations of Accredited Buyers Representative (ABR), Certified Residential Specialist (CRS) and Seniors Real Estate Specialist (SRES). You can contact him by e-mail at Jim@RealtorJimC.com. Call: (435) 674-0600; or write: Jim Coleman, 201 East St. George Boulevard, St. George, Utah 84770. This and other columns are available at www.RealtorJimC.com/articles.