Buying
a Home...
Hot,
Normal, and Cold Markets
Hot
Market - This is an extremely competitive market,
one that is advantageous to the seller. Sometimes, homes will
sell as soon as they are listed or even before homes are listed.
Typically, during a hot market, multiple offers will be made
on each home and more often than not, homes will sell for
more than their asking price. It is even more crucial to be
prepared and to be ready as a buyer when the market is hot.
It can be easy to get caught up in the bid for a home, but
if you are prepared (pre-approved, solid in price range, realistic
about your needs), it is easier to remain focused on your
housing needs and price range.
Normal Market - In a normal market, there
is fairly a large number of homes available and an average
number of buyers. This market does not necessarily favor the
buyer or the seller. A seller may not have as many offers
on their home, but he or she may not be desperate to sell
either. Again, it is the buyer's responsibility to be prepared.
During a normal market, the chances to negotiate are higher
than in a hot market. As a buyer, you can expect to make offers
at lower than the asking price and negotiate a price at least
somewhat less than what the sellers are asking.
Cold
Market - In a cold market, houses may be listed for
more than a year and the prices of houses listed may drop
considerably. This market is advantageous to the buyer. As
a buyer, you have the time to make an offer that works to
your best interest. It is not uncommon to low-ball and to
find that sellers are accommodating to meet your needs. Keep
in mind that even though this market is a great time for buyers,
you do not want to lose your dream home by being unrealistic.
Your goal is to get the your dream home at the best possible
price.
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