Affordability Returns to Housing

Affordability returns to housing, and buyers have loads of negotiating power.
By MarketWatch

Many people are afraid to buy a home in times like these, with the economy tanking and home prices continuing to fall. But if you're brave enough to stray from the herd, you might be in for the home-buying opportunity of a lifetime.

Ask for price reductions, improvements, closing costs — whatever — and the seller, desperate to get a contract, is likely to work with you, said Jay Papasan, one of the authors of the book, "Your First Home." but when the market starts improving, your negotiating power will start to diminish, he added.

"People can get a lot of what they need and almost all of what they want today," Papasan said. "Once a few people get off the fence, there's safety in numbers and you lose your leverage."

If you're qualified to buy a home now, and the purchase makes sense for your situation, and you're prepared to live in that home for at least five years, you may be headed for a great deal.