For the past 5 years, buyers have enjoyed a nearly perfect atmosphere to buy real estate at low prices. Since virtually all of the news coming from the media has been negative for so long, most buyers have assumed that it will remain negative in perpetuity.

Prospective buyers must now be for-warned. The days of pressuring sellers are limited. The release of multiple signs of an impending housing and economic recovery is seriously compromising every buyer’s negotiating position.  Buyers must be aware that:

“All good news in the media is bad news for buyers.”

Buyers should think of it this way: if a seller they are negotiating with receives positive news about the economy or real estate sales activity, their confidence level goes up. And:

“When a seller feels more confident, they are much less likely to negotiate a great price for the buyer.”

Buyers must remember that every article release that shows:

• Unemployment numbers are dropping
• Real estate sales are up and inventory is down
• Consumer confidence is returning
• Interest rates are at their lowest point in history

gives hope of a speedy recovery and higher prices to all sellers. It won’t be long before sellers recognize that 10 years of lost appreciation have led to an over-correction in housing prices. Once sellers feel there is hope for rapid appreciation to bring prices back into balance, buyers will be paying a good deal more than they are now. In some cases, buyers may even have to offer more than fair market value to get the home they want, or accept a home that is not as desirable. Buyers be for-warned, the time is coming when the present buyer’s market will become a seller’s market. The opportunity you miss today, may be an opportunity you miss forever!