I found a great article by Greg Swann out of Arizona today, and it touches on the harsh reality of the difference between being a buyer in a buyer’s market, and a seller in a seller’s market- the buyer’s situation just isn’t as sweet. [Click here for the full article.]
While sellers in a seller’s market can take their time, have a strong upper hand, and can pit buyers against each other in some very competitive situations, buyer just don’t have that luxury. A buyer typically looks/shops for months, only to narrow their search down from 100 properties to 1, and then become just as heart-set on the property as they would in any other market- only now they fool themselves into thinking they have time to spare, and they wait.
I personally have worked with two escalation clauses in the past 6 months, and have heard at least one other story of a potential buyer of one of my properties just barely missing out and not submitting an offer in time, only to find the home of their dreams under contract to be sold to somebody else. It is a buyer’s market, but buyers tend to inevitably get more emotionally tied into the transaction and thus will never experience the true effect of having a strong advantage, and having true time to spare once they’ve found “the one.”
Note to home buyers- IF you have the discipline and restraint to do it, try to choose 2-3 homes that you would be happy living in and negotiate with no true “#1” choice. As we all know, this is next-to-impossible to do, as there is always that one home that sticks out heads above the rest! However if you CAN do it, you can truly take advantage of a buyer’s market.
If you can’t force yourself into this sort of discipline or just can’t control your excitement over that perfect home, don’t delay! That property that sticks out heads above the rest to you is the same one that is sticking out to other buyers, and no matter the market it just might not be there next week.