While during good times builders tend to be in a non-negotiating mood, with bloated inventories now is the perfect time to find a spiffy new house and make an offer. Your realtor can check days on market and the number of vacant units. If both are high then the builder is paying interest every month and you've got a good chance on getting a great deal. New construction can be great in that you will generally get a decent warranty for a year on the property and also that you have a fairly uniform development.
Buyers are also waiting on buying upper end houses; especially greater than $400,000. This has created a pricing quandary as no one really knows what the upper end is worth anymore. This can make your buying process more difficult. You can get a great deal; however, it's hard to predict if you are dealing with a motivated seller before you make an offer.
The listing price for some will be a starting point, but others really don't like to dicker. Memphis has traditionally been a low negotiation town. I've always been a proponent of leaving yourself some room to negotiate, but some people have a significant amount of emotional investment in sticking to their asking price. It never hurts to make an offer, though, just be prepared for some extra shopping time and with the reward of potentially a really great deal.
The other major consideration created by the low appreciation of the Memphis market is mortgage balances. Having little or no equity in the property and faced with the necessity of paying a six percent commission, it can be very tough to convince someone to pay ready cash to close the deal. That's if they even have ready cash. The true market price of a residence can take a back seat to facing reality of a lowered standard of living to pay back the shortage on a loan.
Due to the tax credit and general residual need the lower than $200,000 dollar market is still quite vibrant. This spectrum in Memphis also represents the first time home buying couple and is usually competitive with equivalent rentals in about the same price range. Due to a national preference for buying attributable to both a culture of customization and tax advantages, there should always be a steady flow of buyers in this price range. Demand may be pent-up for awhile but it should never go away and won't be lost.
Some house transactions are being permanently lost during the recession. People who desire to upgrade have wisely decided that caution should be used when changing. Buying a house has considerable costs and should not be undertaken lightly.
Contact Memphis Realtor David Sandy, Esq. at 901-255-2740 or check out his website at www.mymemphisrealestateagent.com for more information.
