Buying a home in an unprecedented seller’s market
We’re in the ultimate seller’s market, which means real estate is ultra-challenging for buyers right now with strong competition, limited inventory, and homes selling as soon as they hit the market (if not before). Low mortgage rates and a year filled with unique changes and shifting homeownership needs have prompted buyers to think differently about where they live – and they’re taking action. So, what’s the best advice for home buyers in this current climate?
In 2021, you have to be decisive, because you’re going to be up against offers from people who haven’t even seen the house in person yet. You have to be sharp, competitive, and comfortable taking risks. Most importantly, you need to make sure you are ready, because trust me when I tell you, it’s going to be a ride.
6 dos and don’ts for home buyers navigating this wild real estate market:
✔️ Do: Find a realtor you trust to fight for you
Working with a trusted real estate professional will help you navigate bidding wars, timelines, and will be your…
✔️ Do: Be as flexible as possible with scheduling
Working with the seller’s timing needs may help your offer stand out. Based on the seller’s timeline for moving and closing date, finding a timeline that makes sense for all involved will make for a…
✔️ Do: Find a trusted local lender
It’s crucial to be financially prepared so you can act quickly when you find a home you’d like to make an offer on. Getting pre-approved ahead of time means that you know your budget and sellers know you’re serious.
❌ Don’t: Make a contingency offer
This is a tough one if you’re in this situation, however, with the high level of competition for buyers right now, offers without any contingencies (relying on another home to sell) appear stronger and ‘safer’ for sellers to accept as they won’t be dependent on a separate transaction that’s out of their control.
❌ Don’t: Write a letter to the sellers
Gone are the days of tugging at the heartstrings. Not only can these ‘love letters’ be viewed as potential Fair Housing violations, but with the current climate of multiple offers, sellers are more focused on the financials and timelines to ensure a solid offer is in place that enables them to sell at a price and timeframe that works for them.
❌ Don’t: Get hung up on what you think a house should be worth
As in any market, the value of anything is driven by consumer demand and for a home, what buyers are willing to pay for it will determine the home’s ‘worth’. If the last time you purchased a home was during a balanced or buyer’s market, you may need to adjust your mindset with current market pricing.
(Source: Business Insider Personal Finance)
How to be a competitive home buyer
Yes, it’s a seller’s market right now, but it is possible to buy a home if as a homebuyer you’re prepared, focused, and ready to act quickly:
“If you want to be competitive in today’s housing market, it’s important to have all of your finances in order and be ready to move quickly when you find a home you love,” said Rachel Stults, Deputy Editor, Realtor.com. “A good tip is to get pre-approved before you begin house hunting, and then look at homes under your budget. That way, if you need to offer above asking to be competitive, you can do so without stretching your wallet.”
- How To Be A Competitive Buyer In Today’s Market
- The Importance Of Being Pre-Approved When Buying A Home
- Search Central Oregon Homes For Sale
Low mortgage rates are a plus for buyers right now, but experts forecast we’ll see them continue to rise as the year goes on. If you’re ready to purchase a home, it’s wise to get started on the process soon so you can secure today’s comparatively low rate. Calculate just how far you’re willing to go to secure a home – without FOMO driving your home buying decisions – and lean on your real estate professional as an expert guide along the way. Working with a trusted real estate professional will help put you in a position to act quickly and efficiently when you’re ready to buy a home.
Let’s work together
If you’re a buyer that’s ready to make a move, we’d love to help. Get in touch via the form below and let’s put a strategic home buying plan in place for you: