When shopping for a new home, timing can have a big impact on the overall price you’ll pay; more specifically, a buyer’s market is a time when making a purchase may simply the best decision. A buyer’s market is a period when there are more properties for sale than buyers actively looking to purchase.
During a buyer’s market, purchasers have an advantage over sellers in price negotiations, which means sellers are willing to let go of their property at an amount significantly lower than the market value. Due to the competition that exists between sellers to attract a limited pool of value driven buyers, homes also tend to sit longer in the market before they begin to attract bids.
In a property market where buyers have the upper hand, finding the right home can be overwhelming considering the abundance of options you have. An effective way to approach a buyer’s market is to avoid limiting your search to a certain price. For example, if you’ve set yourself a R2.5 million target, also look for properties upwards to R3 million, and lower your minimum to R2.5 million. Sellers are constantly revising their rates downward so you may risk letting your dream home slip through your hands if you limit your search.
With some persistence, you can get the home you want without blowing your budget. Don’t hesitate to put a low-ball offer on the table with every property you approach. The worst that can happen is that the seller rejects your offer, and you can simply move on to the next property. But you might get lucky and have your offer accepted.
A buyer’s market is a good time to consider getting into the property market, upsizing or downsizing, and these tips will help you become a homeowner with your best foot forward.
