For Buyers: Condo Buying Tips
- Use a Buyer's Agent
- Why You Should Not Make Any Major Credit Purchases
- Be Wary About the Listing Agent
- Be Careful of the "Dual" Agent
- Getting a Legitimate Lender and Getting Pre-Approved
- Finding the Right Seller
- Build a Plan of Action and Get Ready
- Hot, Normal, and Cold Markets
- Importance of Inspection
- Avoiding Financial Stress
Hot, Normal, and Cold Markets
This is an extremely competitive market, one that is advantageous to the seller. Sometimes, condominiums will sell as soon as, or before they are listed. Typically, during a hot market, multiple offers will be made on each condominium and more often than not, condos will sell for more than their asking price. It is even more crucial to be prepared and to be ready as a buyer when the market is hot. It can be easy to get caught up in the bid for a condo, but if you are prepared (pre-approved, solid in price range, realistic about your needs), it is easier to remain focused on your housing needs and price range.
In a normal market, there is fairly a large number of condominiums available and an average number of buyers. This market does not necessarily favor the buyer or the seller. A seller may not have as many offers on their condominium, but he or she may not be desperate to sell either. Again, it is the buyer's responsibility to be prepared. During a normal market, the chances to negotiate are higher than in a hot market. As a buyer, you can expect to make offers at lower than the asking price and negotiate a price at least somewhat less than what the sellers are asking.
In a cold market, houses may be listed for more than a year and the prices of houses listed may drop considerably. This market is advantageous to the buyer. As a buyer, you have the time to make an offer that works to your best interest. It is not uncommon to low-ball and to find that sellers are accommodating to meet your needs. Keep in mind that even though this market is a great time for buyers, you do not want to lose your dream condominium by being unrealistic. Your goal is to get the your dream condominium at the best possible price.
Article by CLTA
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