One of the primary factors that drives Real Estate sales is the common economic idea of supply and demand. When there are many homes on the market (excess of supply) the demand for a specific property is much lower. The lower demand on a specific means that the seller cannot demand such a high price if they want to sell their property. This is commonly referred to as a buyer’s market. In this market you (the buyer)  are more likely to find a home that is “closer” to your perfect home and will be able to negotiate more aggressively on things such as items included in the sale, sales price and closing costs.
To take advantage of this market - you (the buyer) need to do some homework [All of which a decent real estate agent will help you with]. Things to focus on in a buyers market are as follows:
1. Get Your Best House - When there is an abundance of inventory (homes) on the market as in a buyer’s market you (the buyer) can be more choosy. Make a list of nice-to-haves and must-haves and give it to your agent. He/she will take this list and find you homes that meet your criteria. The better your criteria, the closer you will get to your “perfect” home.
2. Research - This is where your agent will start to make his/her money. Any “yahoo” can search the MLS with a specific set of criteria and give you a list of homes to review. Quality agents will then show you the homes and point out specific plusses and minuses for each thus helping you “narrow the field”. Once you decide on a property and want to make an offer let your agent do some work. Research sold property prices, find out exactly what the market has been doing the past 3-6 months- if the maret is still declining you can be more aggressive. You have to know the market in order to get your best deal. Have your agent put together CMA’s (Comparative Market Analysis) for the property and explain to you why he/she is proposing a specific purchase price. In my experience a low priced offer is better received if there is documentation and justification submitted to back it up.
3. Negotiate aggressively - A common misconception about negotiating in a real estate transaction is that only sales price is negotiable — NOT TRUE!. What is negotiable - almost everything from sales price and closing costs to the household items that you (the buyer) want to have included in the sale of the home. I should warn you, however, not to get greedy. When you have the upper hand (as in a buyer’s market) it is easy to lose sight of what is fair and right and get a little greedy. Please keep in mind that if the tables were turned and this was a sellers market, you wouldn’t want the seller doing the same to you so use discretion. If the refrigerator looks perfect in the kitchen and matches the other appliances perfectly ask to have it included. Do not ask the seller to come over and wash your windows for the next year.
