Buyer Outlook

These are great times for buyers

Buyers typically are feeling more comfortable waiting for that perfect house to come along. If they lose out on today’s house, they often anticipate that another home for sale will pop up down the road.

They feel that they can afford to kick tires and negotiate. In many cases, they can.

With fewer ready, willing, and able buyers, the house hunters out there today are enjoying more leverage and negotiating power than at any time in the last 10-12 years.

Because the sellers must compete it pays buyers to inspect carefully and negotiate when conditions dictate. Unlike the years when buyers were bidding up the prices of even the ugliest of properties, today, the buyer often does not have to succumb to “take it or leave it” terms.

Low interest rates

Interest rates are at historic lows, making mortgage payments far more affordable.

Prices are more affordable

Prices have dropped substantially in San Francisco. San Francisco prices have rolled back to those last seen in 2003 prices in some cases. San Francisco properties are far more affordable relative to rents than they have been in many years.

Conditions are good, but will not stay this way forever

It is important for buyers to understand the limits of their negotiating power.

Overestimating market weakness can lead buyers to miss out on some pretty desirable properties, since attractive properties are the ones where buyer competition does exist. So regardless of weak market conditions, the smart buyer will educate himself or herself and be ready to strike when a wonderful property appears suddenly.

Many buyers will, no doubt, miss out on great opportunities as they get lulled to sleep during these wonderful times. When the economy does show more force in rebounding, interest rates and prices will begin to rise.