Tuesday, March 16, 2010

Buyers frustrated with lack of good deals. Know where to look!

YES, This IS a buyer's market. Yes, there are good deals to be had in Nashville (or just about anywhere in the country).

NO, you CANNOT expect to get anything you want at any price you want.

For the past few years, most of my buyers are looking specifically for a good deal. In fact, I would say that throughout the decades most agents hear the phrase "We are just looking for a good deal". This is regardless of the economy.

I have a client who is currently looking for "a good deal" here in Nashville. We have looked at about 25 homes (10 of which he has "LOVED"). Of those 10, we have now made an offer on 2 of them. On the first offer, we came in at $40,000 under asking price (roughly 8% of asking). The sellers came back at $5,000 under asking and my client walked away. He said that he was insulted that they would not come down. "This is a buyer's market" he said "They should be lucky that I am even making an offer". In his defense, he is a cash buyer and can close within 2 weeks of binding agreement.

We have now moved on to our second offer. Our offer consists of $20,000 price reduction and asking for almost all of the furniture in the house! We were countered with full price and the furniture can be sold separately. (outcome TBD)

I am also under contract with a client of mine who made an offer of $20,000 less than asking price AND to have closing costs covered. This buyer is also a cash buyer and can close right away. The sellers (This is an estate sale so technically the "sellers" didn't even live there) came back with a full price counter and no closing costs covered.

Although we hear the term "Buyer's Market" everyday, I think that some people's perception may be a little off. Most of the good deals out there are from those who have not been able to make their mortgage payments (Nashville short-sales and Nashville foreclosures). Then there are the occasional desperate situations (moving out of state, divorce, etc). For the rest of the home sellers in America though, THEY ARE NOT GOING TO GIVE YOU THEIR HOME!!! You cannot always search the MLS for that dream home you are looking for, low ball, and have them hand you the keys.

There are a couple ways to find a good deal in this current market;

1) Short-sales, Foreclosures, Auctions, etc. This takes time and negotiations are done with a bank who looks at bottom dollars. Your Realtor can be a shark with the bank.

2) The occasional desperate situation. Sometimes this takes a little research. Ask the listing agent how bad they want to get out of the house and how flexible they are before asking for their first born children. Also, there is still new construction (built within the past few years but never lived in) that seems to be at regular market value. Ask the listing agent if the builder is desperate! I have seen some good deals through even new construction.

If you are looking for that "good deal" in your area then call a TRUSTED local professional. They can help FIND those deals you are looking for. They aren't always the dream house down the street but they are out there.

Stephen Strickhausen

Nashville Homes for sale
Nashville MLS Search

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