Avoiding First Time Home Buyer Mistakes
A buyers market is that in which supply supersedes demand. In the real estate industry, this occurs when the number of houses available on the market is more than the number of available buyers.
This usually happens in times of economic downturn, a situation which reduces the spending power of buyers, thereby making people less interested in acquiring new costs by buying properties.
The effect of this on the market is that prices remain static and even experience a dip sometimes.
In the Nigerian real estate industry, during times of economic downturns, a lot of people are afraid to spend huge sums of money in buying properties. Yet, the truth is that this might just be the best period for a real estate investment.
Here are a few reasons why
- Prices go Lower: In a buyer’s market, because there is an availability of houses and decreased demand. Some sellers reduce the prices of their property as an incentive to ensure that the property is sold on time. So, if you’ve been planning on buying that new house or office, a buyers’ market may be the right time to go for it.
- Multiple Choices: A buyer’s market affords you many options when it comes to purchasing a property. You are thus able to pick not just what is available but what you actually want. This reduces the chances of buyer guilt thereafter.
- Possibility for Profit: If you are in the industry as a flipper, this might be an opportunity to make some profit. When you get a property at a reduced price during a buyers’ market, it gives you the opportunity to make a substantial profit when the market picks up and prices are stabilized once more. However, this should be done with caution as you would not want to purchase a property that ends up being a liability to you.