The current buyer’s market in Baldwin County is fueled by four factors. (1) a record number of new construction and resale houses/condos are on the market, creating stiff competition among sellers; (2) new and resale home prices have stopped escalating and in some cases are even dropping slightly; (3) mortgage interest rates remain very affordable; (4) motivated sellers---those who have to sell---are eager to negotiate on price and terms.

Does all this mean that there is a panic in the market, causing sellers to dump houses at huge discounts? No--at least not in Baldwin County. There are however many “motivated” sellers in the market at the present time. These motivated sellers include (1) people who have to sell now for valid reasons, such as a job transfer, unemployment, pending foreclosure, divorce... (2) investors who attempted to time the market in order to buy and flip a house during the escalating prices of the past sellers market. Many of these investors bought at the peak of the market and have now decided to sell for a small loss rather than continue to make mortgage payments on a house they can’t flip. These motivated sellers are growing more anxious as they see the record number of homes/condos on the market continue to grow.

Just because a seller is motivated does not mean a home buyer will be able to negotiate a “great deal.” To determine if a motivated home seller can offer a fair sales price, ask your buyer's agent to find out (a) how many years ago the home was purchased, (b) what price the seller paid, and (c) what is the total of the existing mortgages and liens secured by the house. If your buyer’s agent can’t gather this info, find another agent! The answers to these questions will reveal if the seller has the home equity required to negotiate.

New construction houses/condos can also offer a great bargain for buyers. Many builders ignored the signs of the impending buyer’s market or could not slow their production schedules down in time to prevent an over supply of their inventory. In order to reduce inventory and continue to start new homes, many home builders are offering amazing bargains, in the form of option prices, upgrades and financing opportunities. Many builders will be reluctant to reduce base prices (for fear of reducing appraisal values in their communities) but will negotiate on options and financing.

The Buyer’s Market EDGE is a systematic approach to searching for the home that best meets your needs and negotiating the price and terms that best fit your economic situation.

The underlying concept of the program is to promote your intention to buy a new home and then allow home sellers to make you an offer. Home sellers can either be people who currently have a home on the market or people who are considering putting their home on the market. This is the exact opposite concept of traditional real estate. The idea is to find motivated sellers who are capable of negotiating price and/or terms and are willing to work with the buyer to find an acceptable “compromise”.

The Buyer’s Market EDGE provides a place for sellers (and seller’s agents) to go and seek out qualified buyers. Our goal is to promote to the selling public your intention to buy—in hopes of obtaining multiple offers for you to consider. Because sellers are unaware of the other sellers they are competing against, they are encouraged to make there best “offer to sell” first. When this situation occurs, the buyer is working from the position of strength.