The truth about the housing market

In today's uncertain market, fear runs rampant on both the buying and selling sides of
the fence. Many myths need debunking. Here are four myths held by buyers and sellers.

Buyer myth No. 1: The longer the house is on the market, the more you can negotiate.
When buyers ask, How long has this property been on the market?, they think six
months means they can negotiate the price down. It more often means the seller is
stubbornly holding on to their price.

Buyer myth No. 2: The sellers today are desperate.
Most aren't. Always ask why the sellers are selling. It's the key to finding how motivated
and anxious they are. I'm being transferred to... is a very different answer than We'd
like to find something bigger. The first homeowner is then motivated.

Buyer myth No. 3: You can't buy a home today with less than 20 percent down.
Some lenders will allow only 5 percent down plus your closing costs.

Buyer myth No. 4: You shouldn't buy before prices have bottomed.
You can't sharp shoot the real estate market. Once the bottom has been identified,
prices will have started to go up.

Seller myth No. 1: Now's the absolute worst time to sell.
If you're a homeowner who wants to trade up, the decrease in value you'll take on your
current home will be more than offset by the bargain you'll get on the next one.

Seller myth No. 2: Never respond to a low-ball bid.
All buyers today feel obligated to put in low-ball offers to see if the seller bites. If you
respond with a reasonable counter offer, most buyers can be convinced to come up in
price and make the deal. Your Realtor will communicate that and do what's best for
you.

Seller myth No. 3: The first offer is never the best offer.
Most sellers believe that it's smart to hold out for something better. But statistically
speaking, four times out of five, the first offer is the best you'll ever see.

Seller myth No. 4: 'I can always reduce my price later.'
Sellers often price their home high for a few weeks just to test the market. But buyers
shop by price bracket and if your house is in the wrong one, you'll just help sell
everyone else's home while yours sits there overpriced. And reducing your price later in
small increments puts you in the position of chasing the tide as it goes out.