Jan. 3, 2009
Bargain-picking time
Its been a long time since buyers were in this commanding
of a position in the buyer-seller relationship. The million dollar question
is, will buyers overcome their fear and take advantage of their advantage?
Who could blame someone for wanting to sit on the sidelines
for a year or two? After all, the real estate market has resoundingly
crashed in places like California, Arizona, Nevada and Florida. Prices
are down 40% or more from their highs in some areas. Even Northern Virginia's
red hot real estate market has taken a licking, but evidence suggests
it has bottomed.
What about the Northern Neck? Sadly, there is little in
the way of quantifiable data in that regard. Real estate agents are sensitive
on the subject, but anecdotal evidence suggests that rising inventories
over 2008 have made it hard to sell a house. Finally, that's beginning
to be felt in the marketplace.
Drive a hard bargain
If you want to buy a home in the Northern Neck in the first
half of the year, the field is wide open. You just have to make sure you
don't overpay, and that may require you to be ruthless. What might have
been considered a "low ball" offer a couple of years ago could
in fact be a very fair offer if the owner and listing agent are still
living in a fantasy world.
I recently wrote
an article for ConsumerAffairs.com about home valuations. I talked
to economist Joel Naroff, who said buyers should pay no more than the
house would have sold for in 2003. Anything more than that, you're paying
for bubble.
Opportunities
Some sellers and their agents appear serious about moving property in
2009. A look at the latest real estate listings do, in fact, reveal some
bargains. True, there was a lot of lavish building in the last couple
of years, so there are lots of oversized homes priced at $1 million plus.
But there are some waterfront bargains as well. It just requires a lot
of looking - and tough negotiations.
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