Incentives for Buyers in today's market

The real estate market is cyclical, and for most parts of the country we are in a buyer's market. This is usually indicated when there are a a lot of homes (inventory) on the market. Buyers sometimes wait to see if prices will drop further since this doesn't always happen they may miss out on what might have been a great deal. Here are three reasons it might be a great time to consider buying a home despite financial fears.

1. Better Prices: when there are more homes for sale on the market the competition to sell a home is greater. Some sellers even drop their price below the market value to attract a buyer to speed up the sale of their home in order to meet a moving deadline. Bidding wars are also less likely when there are a lot of homes in inventory.
2. More Choices: with a greater inventory of homes on the market there is a greater variety of properties to choose from for the buyer. You don't simply have to take what you can get. This increased inventory also gives you a stronger negotiating position. If one deal doesn't work out there are more houses for you to use as a back up.
3. Extra Incentives: with more competition for the seller, new construction and private sellers alike may offer extra incentives to entice the buyer. It can be everything from seller paid closing costs, to home warranties, to an allowance for fix up items in the homes. A Buyer's Agent can really help you determine which incentives add the most value to your purchase now and when it comes time for you to sell.

Even the government is getting involved with special tax credits for first time home buyers to encourage home buying.