Spring will probably be a Buyer's Market

We have just got out of the month of December, which is not the best month to sell a home. In actuality, it is the best month to buy a home because most sellers are more desperate and buyer traffic grinds down to a trickle.

This spring will increase the sales chances, but it is predicted to still be a buyer’s market. The problem is that there is currently an abundance of unsold inventory on the market and the spring usually brings an additional influx of homes on the market. Even if buyer interest increases, it probably will not be enough to satisfy the current amount of homes on the market, let alone the predicted increase of homes to hit the market.

Sales chances are calculated by dividing a month’s sales figures by the inventory on the last day of the month, resulting in a percentage. A number less than 20 percent indicates a buyer’s market.

Currently, there is just too much surplus inventory. In addition, with all of the current homeowners sitting on piles of equity, the incentive to sell will still be strong. This scenario creates a great opportunity for potential buyers that are still on the sidelines. Many homeowners are beginning to realize that they can’t get the lofty home prices that were common in 2005. Deals abound everywhere, especially from homebuilders that can’t afford to hold on to inventory.

In today’s market, if a home has been on the market for over 90 days, it is probably a good idea to offer at least 15% less than the current asking price as a starting point. Homeowners that have owned their home for over five years have a lot more room to negotiate than a homeowner that bought within the last year or two. It may also be a good idea to do some research and find out how much the current owner owes on the property. This can give you some insight on how much they may be willing to negotiate