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.
Buyer's Tips
Avoiding Financial Stress -
Use a Buyers Agent -
Don't Make Major Credit Card Purchases -
Be Careful of the "Dual Agent" -
Finding the Right Seller -
Importance of Inspection -
Getting a Legitimate Lender -
Be Wary About the Listing Agent -
Hot, Normal and Cold Markets -
Build a Plan of Action and Get Ready
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