There has been lot of noise in market that market has been cooling off. Does it means that  this time is accurate for buyer’s to benefit from market conditions and put money into properties?

A buyer’s market crops up  automatically when sellers have are not in a condition of negotiation on the sale of their property. At this particular time, The buyer has an edge in buying property as there are many options of properties to select from. Property  prices can also go down due to the negotiations of intelligent and clever buyers who read the mindset of seller.

Now the question is , Whether we are heading towards buyer’s market? Yes, Some locations in India have shown indications that we are moving towards buyers market. In many segments and locations, property sales have slowed down reason being overpriced. Properties are staying in the market for much more time than expected because of unnecessary demands from sellers. The longer time a property is in the market, the sellers are more willing to negotiate on the property as rotation of money stops for investor or so called seller.

It’s not only number of inventory of properties for sale is going up, on the other hand the property prices in some areas have already stopped increasing because of high number inventory available. In few locations the property prices are actually experiencing decreases in value.

As per market saying the interest rates from banks are working against buyers as they are slightly on higher side, but that is not the case. Interest rates are still at a reasonably low level and nationalized banks have even lower down interest rates. This means that the middle class family can even afford to buy the home at this time.

Actually if we notice, interest rates from banks helps in creating a buyer’s market. When interest rates are increasing, many people who buy home are experiencing monthly installments to get adjusted from their household incomes. Some buyers who have purchased when market was at peak are transferring their loans to other banks to get less monthly installments to pay their loans.

Then secondly, Foreclosures in banks increases. People are not able afford their homes monthly installment. They have to sell those properties on cheaper prices and finish off loans from the bank. With this condition , property comes into distress sale, buyers get large number of options to buy at cheaper prices to choose from.

All of these above mentioned conditions give buyers an advantage in the real estate investments. Buyers don’t need to think much for buying their first home because homes are not available on cheaper prices or supply is not there. Right now  Multiple options are still available and buyers can be little more relaxed in searching right property for themselves. Still if we think and search there are areas and locations which are experiencing a high number in demand.

If you are actually looking at buying a property in any location that is having a slow down, you can always use things to your benefit. Firstly, Just find out seller’s reason for selling the property ; whether he needs money or wants to repay loans as income is low now etc. That is the time if you are able to read that and sense that this will be giving you an edge over a seller. If there are any conditions that you want to include in the agreement you can always do as this the time put your conditions on sellers. Sellers who are not able to sell their properties from long time will more willingly do what is necessary.

Most Important thing which one should not forget is to have the property appraisal done through right surveyors and you should make sure that there is an appraisal contingency clause in your agreement to sell. If the area where you are buying property is experiencing fast dropping property prices and your payment terms with seller in few months, then you should always go ahead and get the property valuation done for a second time close to making entire payment to seller.

Buyer’s markets are excellent options for buyers. But you should not worry too much about the market sentiments, What is important is to buy a house or a property which you can afford.

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Author:  NIKITA DAGAR