Anyone who has ever been involved in the real estate market -- buyer or seller -- knows that there are times that are better for one side or the other, depending on market conditions. Residential real estate, in particular, is subject to swings that go back and forth, with conditions favoring sellers at one moment and then swinging back toward favoring buyers the next. This is true in markets throughout the country, including in South Florida.
No one will deny that for quite a long time -- years actually -- the real estate market for residential property in most areas has been heavily in favor on buyers. When the economy nearly collapsed as the so-called "Great Recession" began, the housing market felt the negative impact worse than almost every other area of the economy. But, fortunately for those in the South Florida area, the housing market bounced back quite a bit more quickly. In fact, over the last few years, sellers have been enjoying an increase in bargaining power. However, that may be changing.
Some experts have noted that several real estate factors in South Florida are leading to a change in dynamics in the market. The inventory of available homes and condos has begun to rise again, leaving buyers with a better selection. And interest rates remain low, which may be leaving buyers feeling less rushed, more cautious and more selective before jumping into a real estate transaction.
Negotiating power can lead to many different developments as a deal is worked out between a buyer and a seller. The terms of a real estate agreement may suddenly be up for discussion if one party feels like the market is more favorable to them. Knowing the market conditions and when to press an advantage can be crucial for both buyers and sellers in the South Florida real estate market.
Source: Sun Sentinel, "South Florida homebuyers enjoying more leverage as market softens," Paul Owers, April 3, 2016