Today it's a buyers' market? Right?
If a house is listed for $500,000, the seller's desperate. Why not offer $480,000 or $450,000 or even $425,000 and really get a deal?
If it's a buyer's market, then they have to take your offer, don't they? It's probably been sitting on the market for months, and they'll jump on any offer they get, right?
Maybe not!
Why? Is it really a buyers' market? A buyer's market is defined as a market in which there are more than 6 months of inventory (to determine inventory, you divide the average number of house that sell each month by the number of houses currently on the market).
In many areas in Orange County, there is less than 6 months of inventory. In the South Coast Metro area of Costa Mesa, there is only 2.68 months of inventory currently available. Typically, this low inventory would be considered a sellers' market but most would agree that it is not currently a sellers' market.
If a home is desirable and/or well-priced, it is not unusual for that property to sell with multiple offers and over asking price. Does that sounds like a buyers' market?
If inventory is low, homes are receiving multiple offers and selling for more than asking price, why do people consider it a buyers' market? Consider the whole of the situation.
Prices are down 38% in Orange County from the median in mid 2007; prices continue to fall in many areas. If you turn on the news, you will hear of record number of foreclosures and huge increases in unemployment,
Many would say that this would cause a buyers' market. However, consider the other side. There are many buyers who have been wanting to buy for the past several years but could not because of the prices. Now that prices have fallen along with interest, these buyers are able to buy the homes they've been eager to buy for the past several years.
When you are making an offer in today's market, be certain to carefully consider the intricacies of today's market before submitting that offer if it is truly a home that you want to own.
For strategies in buying in today's market, see 5 Ways to Compete in Today's Competitive Buyers' Market.
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About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.
For more information, please visit Costa Mesa real estate. For more information on Costa Mesa homes or the value of a particular home please visit Costa Mesa home values
Click for a free list of Orange County foreclosures or a free list of Orange County short sales or e-mail Me!
Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? Contact me at christine@donovanblatt.com or 714-319-9751 to discuss your options.
Want to buy a home or to list your property for sale in Newport Beach, Costa Mesa, Huntington Beach or Orange County? Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.
Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.
Click Orange County homes for sale to view all OC homes for sale. Copyright © 2009 by Christine Donovan, All Rights Reserved. Understanding How Homes Sell with Multiple Offers, Over Asking Price in a Buyers' Market.
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About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.
Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? For more information see Options to Foreclosures, understanding short sales or contact me at christine@donovanblatt.com to discuss your options.
If you want to buy a home or to list your property for sale, please click Newport Beach homes, Costa Mesa homes, Huntington Beach homes or Orange County homes. Click the link if you are interested in buying a home at a courthouse auction sale.
Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.
Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.
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Click Orange County homes for sale to view all OC homes for sale.
