Sixty-four houses. That's how many the two sisters — both musicians in their late 50s — have considered for purchase in recent weeks. Ironically, the more options they see, the more bewildered and unsure they are about what they want.
Indecision is not an uncommon problem for prospective buyers looking for property in an area where sellers outnumber qualified purchasers, says Tom Early, president of the National Association of Exclusive Buyer Agents (www.naeba.org).
"In a buyers' market — with more inventory available each week — these women feel overwhelmed and can't seem to make the right decision," says Early, the real estate broker representing the would-be purchasers.
By Early's estimate, buyers now prevail over sellers in more than 80 percent of U.S. neighborhoods. But he says this situation is only as advantageous to buyers as they make it. Here are several tips for prospective home purchasers:
Carefully consider your requirements before buying. "All homebuyers need to know what they're really seeking as opposed to their unrealistic fantasies," says Robert Irwin, whose books include "Tips & Traps When Negotiating Real Estate."
Failing to clarify your true housing requirements and limitations can become especially problematic for buyers searching in an area where the inventory of available homes is mounting daily, according to Irwin.
Early believes the two sisters are not realistic in their search for a property suitable for themselves and their father, who is ailing.
"They say they want a country house on several acres of wooded land, and they're qualified to buy that. But when I showed them a property that fit their description perfectly — and there are now plenty — they decided it had too many trees," Early recalls.
He says the two women would be better suited to a property on a smaller, more manageable lot that's also closer to the city and medical facilities for their father. Until they show a better grasp of their situation, their search will continue, Early predicts.
Allow yourself to reach a little higher in a buyers' market. If your mortgage lender has approved you for a home loan sufficient to buy a small ranch-style place in a middle-income neighborhood, you obviously should forget about that swanky close-in house you've had your eye on.
Nevertheless, as Early says, those planning to acquire a home in an area where sellers greatly outnumber buyers can shoot somewhat higher than they could normally have done in a strong sellers' market.
Naturally, prospective buyers have expanded bargaining power in neighborhoods where sellers have fewer offers coming in. Early urges you to use this extra leverage to get more of what you want in a home.
Given the enhanced buying power they now enjoy, many purchasers can consider a slightly more expensive neighborhood or, alternatively, one of several possible upgrades on the property itself.
"Nail down the exact sort of house you want within your general price range. In this market, you might be able to get a few extras that are important to you. Ask your real estate agent to include these 'specs' when creating a list of properties to visit," Early says.
Use your increased leverage to get more from a homebuilder. "A year or two ago, trying to get anything extra from a builder was like trying to squeeze toothpaste out of a tube with the cap on.
Today, there are deals to be had in some of those very same subdivisions," Early says.
Through adept bargaining, for example, you could get cherry wood kitchen cabinets for the price of oak. Or you could negotiate your way into a more-luxurious-than- standard master bathroom.
Don't sacrifice the home of your dreams because you offered too little. Early tells the true story of one of his clients who lost his favorite home, a charming white cottage with a fieldstone fence around it, to another bidder after he tried to get it for 30 percent off market value.
"My client followed this extremely 'low ball' first bid with a second one that was 20 percent off market value. While he was playing around, the owners of the cottage accepted a much fairer offer from another couple," Early remembers.
In most cases, deep lowball offers don't work — even in a buyers' market. That's because the sellers often take offense and withdraw from negotiations altogether.
"You don't want to spit in Superman's face. You're the one who loses if you give up the chance to own your dream property because of greed," Early says.
Ellen James Martin can be reached at ellenjamesmartin @gmail.com.
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