Despite the fact that the Canadian real estate market has not seen the astonishing drop that the American real estate market has, in many markets throughout the country it has become a buyer’s market. So how do you know if the market in your area is truly a buyer’s market? You can ask the real estate agent you are dealing with in the hope that you are getting an accurate response, although in reality, seller’s markets are the most advantageous ones for real estate agents, so they may fudge it a little. You can also do some research of your own to see how long homes are staying on the market and if their selling prices are significantly lower than their listing price. Knowing what to look for can help determine exactly whether or not you are dealing with a buyer’s market.
A buyer’s market simply means that there are fewer people buying than there are homes on the market. What this means for the buyer is that homes stay on the market longer, typically longer than 6 months, and sellers become more likely to accept lower offers than the home’s listed price. Homeowners will also be more likely to throw in extras if it means that their home will move faster. For the homebuyer this means there are lots of deals to be had, you just need to be willing to do some negotiations. You can also take your time checking out the homes you are interested in because the competition is not as high as it would be in a seller’s market. The supply exceeds the demand and therefore the buyer can have more control over the sale.
When you set out to buy a home in a buyer’s market, it pays to be prepared. Do your research or have your realtor provide you with data concerning recent sales in the neighborhood you are considering. This will tell you what comparable homes have sold for, when and how long they were on the market. This will provide you with a starting point of what to offer the homeowner for their house. Negotiate hard. Start with a low price including no extras. When a counteroffer comes your way, you can continue to negotiate but request the homeowner throw in freebies each time the price changes. Be sure to take your time and even leave negotiations if they are not going as you’d like. Remember in a buyer’s market you have a lot to choose from.
Not every buyer’s market is equal. In every major center across Canada average home prices have increased in the last year with the exception of Alberta, the Yukon and the Northwest Territories where values dropped. In fact, even the city with the country’s highest housing prices, Vancouver, is becoming a buyer’s market. However, because the housing prices are so very elevated compared to the rest of the country, it means that there are practically no bargains to be found despite its buyer market status.
By knowing your market well, doing your homework and using your bargaining skills you can get a great deal on the house you want in no time.