Buyers overwhelmed by surplus of homes

By Melissa Wirkus

The housing market has turned, and we are now officially in the midst of a buyer’s market. There is an overwhelming surplus of homes for-sale on the market, and prices are slowly starting to drop. Price appreciation has already dropped severely in many parts of the country.

Now that we are in a buyer’s market, it seems as if more and more potential buyers are finding it too hard to buy a home – not because they can not find one that fits their needs, but because there are too many to choose from!
A September 9, 2006 article by Ellen James Martin of The St. Paul Pioneer Press, “Home buying decisions can be overwhelming in a buyer’s market,” gives some advice to buyers in a saturated market.

“Indecision is not an uncommon problem for prospective buyers looking for property in an area where sellers outnumber qualified purchasers, says Tom Early, president of the National Association of Exclusive Buyer Agents (www.naeba.org). ‘In a buyers' market — with more inventory available each week — these women feel overwhelmed and can't seem to make the right decision,’ says Early, the real estate broker representing the would-be purchasers.”
Early also estimates that buyers in the U.S. now outnumber sellers in almost 80 percent of neighborhoods throughout the nation. Buyers need to remember a few things when shopping for a house during this time so the whole process can be a lot less overwhelming.

The first thing a potential home buyer should do is make a list of the requirements they want in a house before they even start looking. This will help to narrow down the choices so a buyer can focus only on the homes that meet their requirements.

“‘All homebuyers need to know what they're really seeking as opposed to their unrealistic fantasies,’ says Robert Irwin, whose books include ‘Tips & Traps When Negotiating Real Estate.’ Failing to clarify your true housing requirements and limitations can become especially problematic for buyers searching in an area where the inventory of available homes is mounting daily, according to Irwin.”

When in a buyer’s market, there is a lot more room for negotiation to take place because sellers are more desperate to get rid of their homes.
A lot of times buyers can afford more house than they normally would in a seller’s market because of desperation on behalf of the sellers.

“Naturally, prospective buyers have expanded bargaining power in neighborhoods where sellers have fewer offers coming in. Early urges you to use this extra leverage to get more of what you want in a home. Given the enhanced buying power they now enjoy, many purchasers can consider a slightly more expensive neighborhood or, alternatively, one of several possible upgrades on the property itself.”

When you finally find a home that you love, be careful on how much you offer for the property. Many think they can offer a lot less when in a buyer’s market, but this isn’t always the case.

“In most cases, deep lowball offers don't work — even in a buyers' market. That's because the sellers often take offense and withdraw from negotiations altogether. ‘You don't want to spit in Superman's face. You're the one who loses if you give up the chance to own your dream property because of greed,’ Early says.”

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