Are You Sure it is a Buyer's Market?

Working in real estate in Louisville, KY has been a blessing on many levels. Due to a number of factors related to job retention, job creation, the overall relationship between incomes and housing prices, plus a relatively positive consumer confidence, we have avoided a major melt-down of the local real estate market. Yes, prices have reset to levels more closely related to 2003-2004 pricing, and yes, we have been affected by changes to lending rules and other market drivers, but we have weathered the storm far better than other real estate markets.

With the arrival of the prime real estate buying and selling season, Louisville, KY finds itself in an interesting position - There remains a very high inventory of homes and the pool of buyers is still limited by a variety of factors, yet even motivated buyers are finding it hard to located and acquire the right home for their needs. In many price ranges, groups of buyers prowl the area, ready to pounce at a moment's notice on the best homes in the best locations, and only the most savvy of buyers are benefiting in this new climate.

The challenge facing buyers is the idea that we are in a "Buyer's Market". This drives complacency, weakens negotiation skills, and it does cause buyers to lose out on their ideal home. What is a buyer's market? The ideal buyer's market would be a huge inventory of great homes in a variety of nice locations, easy money from lenders, and very few active buyers in the real estate market. In Louisville, there is the perception that we have those ingredients and therefore a prime buyer's market, however, on further analysis it appears that we are far from the ideal buyer's market and it is actually a very, very competitive market for the best homes in the best locations. For the real estate market in general, this is great news, though for the buyer who fails to understand this concept it can be a very frustrating and painful experience to buy a home in the Louisville, KY area.

What can be done to counter this perception? Education always helps, and I think that is it critical that real estate agents educate their buyer's on the market stats in their preferred areas to ensure their clients are prepared to act when necessary to secure their ideal home. Experience can be a great teacher, as well, though it is a double-edged sword. Losing a home in a competitive environment can certainly motivate a buyer to negotiate more aggressively on the next home, but it takes restraint to not overpay for the next home because of the previous unfortunate experience.

Many components of a Buyer's Market are present in the Louisville, KY real estate market. You can find good deals on a home, and you must negotiate strongly when buying a home - however, you must know the market in which you operate. Mis-reading the market, or failing to recognize the true value of the home you desire can cause you to miss a great deal in a tough market.

Joe Hayden is a Professional Buyer's Agent helping Buyers of Louisville, KY Real Estate. Search the MLS for free here - Louisville, KY Property Listings