Yes, this is officially a buyer's market. And that means this is a good time to be a home buyer.

But no, I really don't expect to see dramatic drops in the price of residential real estate in the metro Atlanta area as a result of the current shift in equilibrium between buyers and sellers.

At it's most basic, what we are experiencing is a change in the balance between supply and demand. And it's important to realize that the shift has been a slight one, not a cataclysmic one. It's also important to realize that the balance can change back toward the favor of sellers very quickly.

The bottom line is this: the current real estate market favors buyers over sellers because there are more homes for sale than there are buyers to buy them. And that makes it a great time to buy a house.

Here's why:

* Prices are softer. Not soft, but softer than they have been at any time in the past five years while we had a real estate boom time. As a result, you can expect some price concessions, especially on new construction and older homes in need of updating.

* Builder inventories have risen consistently over the past year, and many builders believe that a slowdown will never affect them personally, so they continue to build like it was last year.

If you are in the market for new construction, now is the time to shop and compare. Play one builder off against another.

When I studied real estate at Emory under Dr. Jack Andrews, he often talked about the principle of substitution, and I never understood how well it worked until now.

The principle of substitution states that the value of a property tends to be set by the price that would be paid to acquire a substitute property of similar utility and desirability within a reasonable amount of time.

* In this buyer's market, you have an unprecedented opportunity to attempt to find a substitute property, especially in new construction where the houses tend to be similar in features and benefits. This is especially true in entry level homes.

By aggressively shopping for similar properties and seeking the best possible deal you can find, you are using the principle of substitution to your advantage.

When dealing with builders, you may be most effective in seeking upgrades and participation in your closing costs. Builders are loathe to actually lower a purchase price because they feel that the lowered price will become a comparable sale, thus making future sales and appraisals much more difficult.

The builder is often more willing to finish out a basement or add hardwood floors than he is to lower the price by a comparable amount.

That being said, don't be afraid to make a low offer to a builder. The worst that can happen is that he will decline your offer and counter at another price. Remember, this is business; it's not personal.

Put yourself in the builder's position. He may have an inventory of 20 houses sitting there finished and empty, and the bank is breathing down his neck about the construction loans, and now he finds himself with too much inventory and not enough buyers.

He may be much better off taking your offer than allowing the houses to sit there another week.

On the other hand, these same techniques may not work quite as well with the sellers of a resale home, because to them, it probably is quite personal.

My advice on buying resale homes in a buyer's market is quite different.

Instead of making lots of offers and pitting one seller against another, you can benefit most from disciplining yourself.

What do I mean?

* Yes, I want you to see a lot of houses and shop and compare for the one that you really want.

* No, it's not smart to let the seller know that you have several homes in mind and that you are hoping to get a substantial discount.

Instead, my advice is to make a low offer, perhaps as much as ten to fifteen percent below asking price. In addition, it's smart to ask for the seller to pay closing costs and any other concessions you choose.

Then instruct your agent to communicate to the seller that you love the house, that you know the house is worth the sum they are asking, but that this offer represents all that you can afford to spend on a house at this time.

What you are looking for is a seller who can afford to be flexible in their selling price, and not every seller will fall into that category.

And because selling one's personal residence is such a personal and emotional experience, the seller may feel a need to blame someone or something for your disappointing offer. Allow it to be your financial limitations rather than you personally, and you are more likely to succeed.

Remember that not only is the current slowdown in the real estate market working in your favor, but that the weather will be helping you as well.

Winter in the northern half of Georgia is typically wet and cold, about as unpleasant as it gets around here. In addition, the sun goes down around dinner time, making house-shopping more difficult on weekdays.

If you can concentrate your home buying efforts to begin soon and conclude before spring arrives in April, you will likely have been exposed to sellers at their most lonely and vulnerable moments. Lonely because there will be few other lookers and fewer still actual prospects. Vulnerable because only the most highly motivated will bother to leave their homes on the market over the brief Georgia winter.

But don't wait too long. This buyer's advantage can change with small provocation, and interest rates are attractive right now. Strike while the iron is hot.