How to Navigate a Buyer’s Market in NYC: https://www.hauseit.com/how-to-navigate-a-buyers-market-in-nyc/
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Buyers can be more selective and take their time negotiating in a buyer’s market. Buyers will have more time for due diligence before signing a contract and can often successfully bid below the listing price. Sellers will need to be highly disciplined in pricing their property realistically and showing their property as often as possible during a buyer’s market.
What is a Buyer’s Market?
A real estate buyer’s market is a market environment where housing inventory exceeds demand, and bona fide home buyers are harder to find.
A buyer’s market can occur for a variety of reasons, such as an economic recession, mortgage rates moving higher or simply an unsustainable increase in housing supply.
Will 2019 be a buyer’s market?
2019 will likely be a buyer’s market because interest rates are widely expected to continue to increase, which means higher mortgage rates and reduced activity from financed buyers.
Furthermore, many new construction buildings are still being built and due to come online in the following years, such as the huge amount of new developments in Hudson Yards.
Even though the announcement that Amazon will build a headquarters in Long Island City helps absorb some of the supply glut, it won’t be enough given the huge amount of supply overhang.
Purchasing in a Buyer’s Market
Buyers can be more selective, take their time negotiating, spend more time on due diligence, and successfully bid below the listing price in a buyer’s market.
Greater Selection – Buyers won’t feel pressured to make offers on properties that aren’t perfect for them. They’ll be able to pick and choose and wait for new listings that they love.
Time to Negotiate – Buyers won’t be pressured to make a decision because of other bidders. In fact, it’ll be much more likely that you’ll be able to negotiate for an extended amount of time with a seller without worrying that he or she will sell to someone else.
Thorough Due Diligence – Buyers can spend more time on legal and financial due diligence before signing a purchase contract in a buyer’s market. They can take as long as they need assuming that the seller doesn’t have a legitimate other option.
Bidding Below the List Price – It’s much more likely that an offer below the listing price will be accepted during a buyer’s market. In fact, market psychology will tilt in favor of buyers so much that sellers will expect all buyers to make an opening offer below their listing price.
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