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Its Finally The Buyers Turn

(It's finally here!)

Much like when you saw the red bow 10-speed bike sticking out from behind the Christmas tree when you were 12-years-old, excitement is rushing through your veins again as you realize your patience is about to pay off. This is the new life of the American home buyer.

Years of pent up frustration has allowed the window of opportunity to cash in on a great deal appear brighter than you ever thought possible.

Kristin Downey' article, "In a Downswing, Looking Up" published November 15, 2006 in The Washington Post, explains why home buyers are so ecstatic they now have control of the market even though prices are still considered unaffordable.

"Kristy LaLonde, who rents an apartment in Crystal City, spent the past four years 'freaking out' as home prices here climbed relentlessly. She feared she would never be able to own the kind of place she had been raised to expect."

Over the past year, home price inflation has slowed and has most recently started to decrease from last year's mark. Home sellers, who a couple of years ago would advertise their property in the paper at lunch and receive several offers by dinner time are now jumping every time the phone rings. Even then, it's probably just a telemarketer. Their real estate agents aren't exactly planning on buying that 50-foot yacht anytime soon either.

"Not long ago, they [LaLonde and her fiancé] thought the best they could afford was a condominium. Last month, though, they were delighted to find they could qualify to buy a red-brick Colonial in Wheaton -- because the seller had dropped the price from $499,000 to $435,000."

The financial bar has been raised so high that even though homes are still double what they were at the start of the century, people have mentally adjusted over time and as prices fall, the emotional affect is astounding.

"'We feel like we can begin building our life together, start a family,' LaLonde said. 'We can move somewhere that's not temporary, with a yard, and with a neighborhood community feeling.'"

Not only have prices fallen (which is significant) but they have fallen so drastically because there is an overwhelming supply opposed to the demand.

This means that home prices are lower and buyers have a much larger pool of properties to choose from. Many patient home buyers that have been waiting for this for several years literally feel like kids in the candy store.

So, there are more options, prices are lower and what is just as great for buyers is the fact that many sellers are becoming desperate after their property sits on the market for several months that they are offering incentives from paying closing costs to offering the car in the driveway(usually associated with higher priced homes).

"'The shoe is on a different foot,' said Diana Whitfield, an agent with Long & Foster Real Estate in Burke. 'Buyers are realizing they are more in control.'"

Before this change in market mentality, if a buyer did have the necessary finances to purchase a home, they always felt pressured to make an offer and sign documents because there were usually 10 other prospective buyers in line.

This is what has lead to the recent foreclosure increases as many buyers literally got more than they bargained for as they acted too quickly and bought a house that was out of their budget.

Now, buyers are enjoying their time in the driver's seat and are taking their time while sitting there.

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