Overcoming Buyer Barriers: Thriving in Today’s Housing Market with Confidence

My thoughts for buyers in this real estate economy. Buyers face significant challenges with the cost of homeownership taking up a larger portion of household income than in previous years.

Here are effective strategies buyers can adopt to overcome the challenges in this market successfully:

1. Explore Properties with Longer Market Times: It is no?secret, homes are staying on the market longer than before, often exceeding 30 days. Buyers shouldn’t hesitate to consider these properties, as extended time on the market can indicate sellers’ increased willingness to negotiate. In previous days we would say "what is wrong with this home", today longer days on the market may mean opportunities to secure a lower price, request seller-paid closing costs, or negotiate for repairs and upgrades.
2. Negotiate Strategically: With reduced competition for homes sitting longer on the market, buyers have greater leverage to secure favorable terms and price! Sellers may be more motivated to make concessions, offering buyers a chance to reduce overall costs and customize agreements to their benefit.
3. Take Advantage of New Construction Benefits: I have been in the New-build homes arena for a number of years and this strategy can present unique opportunities for buyers. Many builders offer incentives like reduced prices, upgrades, or assistance with closing costs. Additionally, some new construction homes come with NO ASSIGNMENT FEES, which can provide significant flexibility for future resale. For example, I recently worked with a client who was hesitant to commit to purchasing a new construction property. After discovering that the development had no assignment fee, they felt much more confident moving forward, knowing they could easily sell the property later if their circumstances changed. This reassurance gave them peace of mind and ultimately made the decision to proceed much easier.
4. Mortgage Amortization Period: Know if your purchase qualifies for the new amortization rules: CMHC insured mortgages:?The maximum amortization period is 25 years.?This is the most popular option; ??Non-CMHC insured mortgages:?The maximum amortization period is 35 years; ?First-time buyers purchasing a new build with a down payment of less than 20%:? The maximum amortization period is 30 years.
5. Explore Alternative Financing: Investigating various mortgage products, such as those requiring lower down payments or offering favorable terms, can enhance affordability.?

In summary, buyers can find suitable properties while maximizing their finances. Exploring homes with longer market times, negotiating effectively, and leveraging new construction benefits like no assignment fees provide a strong edge in today’s market.?

Joan Hing King, Broker, CLHMS

#real estate buyers #new construction #luxury homes #real estate agent