Take advantage of a Tucson Buyer's Market

Tucson has A LOT of homes for sale right now; there are currently 6191 active listings (single family residence) in the Tucson area. With the abundance of homes currently for sale and interest rates still historically low, it's the perfect time for home buyers to come out of the shadows and start perusing the inventory. Unfortunately many seem to be hiding, waiting for prices to drop even further. I've heard a lot of naysayers out there preaching that "It's crazy to buy right now" and "Home prices are going to go lower so wait to buy". It's always tempting to try to predict what the future real estate market holds, but it's also detrimental. It's a great time to buy whenever everyone else is scared. That's when the inventory is at it's best and there's not as much competition, giving you more ability to negotiate with a motivated seller.

If a home is priced correctly in it's market, buyers will make offers. I search the Tucson MLS daily looking at new listings as well as those that have gone contingent, and I notice that nice homes priced correctly to the Tucson market generally accept an offer within 2-3 weeks. I explain this to my buyers, and some realize that I'm watching out for their best interests and move forward with an offer. Others remain wrapped up in the "doom and gloom" media frenzy, finding homes they like but refusing to make an offer because they're holding out for a better deal. I try my best to explain that if they find a home they really really love, it's a good idea to make an offer now and negotiate terms that are going to benefit them before they lose it to the next buyer that comes around. The home seller is most likely also trying to buy a home, so it's in their best interest to work with a potential buyer to make a successful deal. There's a variety of requests a buyer can make and negotiate into a purchase contract. This is the time to ask for what you want......

• Request a contingency, including appraisal, loan or a contingency to sell your own home.
• Ask for a home warranty
• Ask for an allowance or credit. Don't like the blue carpet? Ask for a replacement allowance. Just remember to ask the lender how the request should be worded prior so it will be accepted in the contract.
• Request that the seller pay for or contribute to buyer closing costs. They typically amount to about 2% of the sales price so it can be a significant amount of money.
• Renegotiate after the home inspection - Most any home will need some type of repair work. If the repairs are minor ask that a specific dollar amount be credited back to the buyer at closing.

Again I emphasize the word "Negotiate". There are still some out there that assume this means "low ball offer" and "stick it of the sellers". The Tucson real estate market may be in a slump, but it's going to remain strong enough that most sellers will sell their home for a price and terms that are very reasonable. So for all those home buyers out there, make your requests, but be rational about it.