The market is improving; that is the good news. And in WNC, the market isn’t as bad as the media portrays in broad strokes; that is even better news. In April 2008, 474 residential properties sold in Western North Carolina (WNC). In May 2008, 520 residential properties sold in WNC. Definitely an improvement.

However, if you look at the stats for 2007, 739 residential properties sold in WNC versus the 520 sales this year for May. That’s a 30% drop. That info, coupled with the fact that there were 8,507 residential properties actively seeking buyers as of May 31, 2008, proves unequivically that we are in a BUYER’S MARKET. When less than 6% of the inventory sells in a given month, buyer’s have the market control.

As a buyer, you have the “pick of the litter” so to speak. The sellers today are, in essence, fighting over you. They want you to purchase their house – not one of the 15 homes their immediate neighbors are also attempting to sell at the same time. If a seller NEEDS to sell (not just trying to see how mutch profit they can make IF they sell), they are willing to consider your terms, whatever they may be.

Here are a few ways to attempt a “better deal” as a buyer in our current market:

• Offer less than asking price. I know, you are saying no one ever offers asking price. But now you can offer even less. Just keep in mind, you want to be careful not to offend and you want to stay fairly close to what true current market value is when you make the offer (unless you know someone is what I would call “desperate”).
• Ask for other concessions if you can’t negotiate a lower price. For instance, ask that the seller pay your closing costs, ask that the seller pay points on your loan (that will reduce your interest rate over the life of the loan, reducing your monthly payment), ask the seller to install the privacy fencing you were going to add, ask the seller to pay a full year of the homeowner’s association dues or condo fees, etc. . .
• It’s ok to let the seller know with your offer that you don’t “have to have” their house. Let them know you have another home you are interested in if you can’t work out the terms on their property.

Now sellers, a buyer’s market isn’t the end of the world for you. There are many things you can do to stand out in the marketplace and ensure your house is chosen over those 15 competing neighbors.

• Have your home staged or at the very least declutter. When someone is shopping for a car and they have 3 of the same make and model at a similar price but one is shinier than the other two, they will choose the shinier one, even if it’s a year older. The same goes for a home for sale — a buyer will choose a home for condition and, most importantly, how they FEEL when they are in the home. If they feel overwhelmed from your collections or your large furniture or that extra piece you squeezed in the living room when it just didn’t fit, they are not comfortable and are unlikely to choose your home. They have to walk into a home and have as few complaints as possible to remember a good FEELING in your home.
• Offer to pay points on the buyers’ loan and/or their closing costs. In today’s economy, people are looking to save money any way they can. If you are paying points on someone’s home that reduces their payment by even $50/month, that could be a “tie-breaker” between your home and the one down the street they are also considering.
• Have a home inspection before putting your home on the market and repair everything the inspector finds. While a buyer is still likely to do their own inspection just to be sure, they will have confidence knowing you had a recent inspection and the home is now in top shape.
• Offer a home warranty on an older home. Again, you are adding confidence.
• Most importantly, PRICE IT RIGHT from the get-go. You must be realistic about the state of the market and agree to price your home in line with recent, comparable sales. You may have been able to get $375,000 for your home two years ago when there were multiple offers on homes in your neighborhood but that is not realistic today. Today you may get $350,000 after a few months on the market. But remember, if you only paid $225,000 a 5 years ago, you are not loosing money taking a price lower than what it may have sold for if you had had a crystal ball and sold it when the market was “hot.”

WNC buyers and sellers, keep your chin up — we could be in FL or CA. Remember, this too will pass.

Search the regional WNC MLS at www.FindAshevilleHomes.com. Get the scoop on Downtown Residential Condo projects at www.DowntownAshevilleCondos.com