For the fourth consecutive month, price reductions have increased for home listings currently on the market in the United States. The reductions are now at an all-time high of 27 percent, according to Trulia.com
The record-high reductions amount to more than $30.7 billion nationwide. In a press release, Trulia concludes that there has been "a continual and dramatic price reduction increase in many cities that began in June 2010."
Anxious sellers, watching prices decrease, have gotten aggressive in their pricing. "We would normally expect to see a seasonal uptick in price reductions between June and October, as motivated sellers whose homes are still on the market after the summer selling season aggressively cut prices in an effort to get their homes sold before the holidays," said Tara-Nicholle Nelson, consumer educator, Trulia.com.
This is like Christmas coming early for buyers who are hoping to capitalize on a bargain-buy before the year's end. "Comparatively speaking, we've found that seasonal considerations combined with a lack of urgency on the part of would-be buyers and continued job market doldrums nationwide have led to more significant reductions during this time period than during the same time frame in 2009," said Tara-Nicholle.
Low interest rates and great deals on houses is making this an ideal time for some buyers to purchase a home. However, while buyers may think it's "their" market, it's important to remember that if you're an ill-prepared buyer, you could lose the deal of a lifetime and the home you really want.
Here are a few tips to keep you prepared for that perfect sale in the new market conditions.
Even if you're just browsing, get your pre-qualification for your loan. You might think, you're not really ready to buy but let's go shopping any way. Don't make this crucial mistake. Know your price point. Understand how much home you can afford and browse in that market range.
Since the mortgage crisis, getting loans and buying a home has gotten more complex and can take even longer than before. That shouldn't discourage you but rather encourage you to get everything in order to make the close of escrow simpler.
Act now. Timing the market and waiting to see if you can get the absolute rock bottom interest rate, can cause you to lose the home you love. Of course, we all want to save money and get the best deal but understanding that when you find a home you really like, trying to wait to see if the rates/price will drop, could cost you the deal. Certainly negotiating is always part of real estate, but just keep in mind that if you're not careful you could time yourself out of the home you really want.
Stay on top of your home sale. If you're in a situation like many buyers are where the purchase of their new home is depending on the sale of their current home, then you must stay on top of your home sale. Contingency sales are sometimes easier to negotiate in a buyer's market.
Keep in mind that the house-hunting process for your new home, is, of course, only part of the deal. That means that keeping up your own home while it's on the market is vital. Sometimes buyers get so busy shopping for their next home that they end up leaving their current listed home a mess. This could turn off a potential buyer; it happens all the time. So do the juggle--keep an eye on how appealing your home is to a buyer while shopping for your new dream home.