NAVIGATING THE CURRENT MARKET CONDITIONS
By Lindsay Jones, Broker
Being a buyer in today’s real estate market is a tough job. Not only have prices gone up, which will inevitably hurt some people’s buying power but there is so much competition out there that sellers are able to sort through dozens of offers to take their pick. Being one of 20 offers is a daunting task and makes the process just more stressful when trying to find a home. Supply and demand has turned our local, regional and national markets into a frenzy with a lack of listings to choose from and an overabundance of buyers. Low interest rates, the need for a more functional home and people needing/wanting to move are just some of the reasons for the increase in buyer activity these days, many of them stemming from the Covid-19 pandemic.
Dealing with clients on both the sale and buy side every single day gives me insight into what works and what doesn’t. Although nothing is ever guaranteed, being able to make offers with confidence and guide all clients with practical and educated knowledge is what we strive for everyday. Here is a list of some ideas to take into consideration when buying and selling in the Spring/Summer of 2021.
- GET PREAPPROVED– if you’re buying a home OR if you’re selling your current home and looking to buy another. This step is always one of the most important things you can do to put yourself in a ‘ready’ position and have an accurate idea for what you can afford. Many people who are selling their current home and buying another don’t think it is necessary to get pre-approved before listing but this couldn’t be any more wrong. You NEED to know what you can afford and what your financial position will be before you put your home on the market. The last thing you would want is to list your home, take an exceptional offer and then realize when going to look for your new home that you cannot get a mortgage. Buyers: always get pre approved before starting your home search. Your offer will be tossed without one and your mortgage may determine what time of home you can buy (condo, needs work, taxes, HOA fees.)
- BE PERSISTENT AND ADAPT– You must continue to make an attempt to be the best buyer out there even though your offers may be getting turned down. If you continuously are losing out on homes, your agent can possibly discuss what factors came into play with the decision to take another offer. Use this knowledge and don’t give up. You may have to change your strategy but being consistent is key and be positive that something will work.
- BE AGGRESSIVE- If you LOVE a home and have to have it, do not hold back. Discuss pricing and market values with your agent to determine what is a realistic and strong offer to come in with and be prepared to compete in a best and final round. Put your best foot forward with your mortgage and down payment and keep the offer as simple and straightforward as possible.
- DON’T GIVE IT ALL AWAY– Many buyers these days are waiving contingencies for inspections and appraisals. Although it is a tool to consider in the tool box for buyers, it is not always the best practice and can put you in a risky position. Please weight out the risks and rewards when considering waiving your right to a home inspection or choosing to have a limited home inspection. Also, appraisals are a hot button issue now too as prices have gone up so quickly. Deciding to cover the difference in an under appraisal situation is a decision that should be weighed carefully. Consider putting a cap on that amount, if you so choose, remember that the seller can also renegotiate the price too. There are many options to review for this and it shouldn’t be an automatic part of every offer you’re making.
- Markets of all kinds never last forever. If you are deciding to sell, get yourself a market analysis to determine what price you’re looking to walk away with so you can make an educated decision on your next move. Think ahead and be prepared way ahead of time when buying or selling. Preparation makes the entire process more seamless and less stressful. Successfully getting buyers into their homes has not always been an easy, straight path these days BUT it is getting done and it can be done with hard work and dedication. Facilitating sales and purchases is a team effort and having the right team on your side makes all the difference.