7 Things Every Buyer Should Know in This Market
The real estate market is on fire right now.
More than 80% of Americans ages 18–34 said now was a bad time to buy a home, and the median price at which houses sold skyrocketed to $1.3 million, or 10 times the median income for the area.
That was up from $1 million, or about 8 times the median income in February
The Bay Area is back on top — in having the nation's least affordable homes!
#1. It’s a Seller’s Market
If you haven’t heard, it’s a seller’s market. What does this mean? Basically, when demand for homes exceeds inventory, sellers are at an advantage. Homes sell well above the asking price and extremely fast.
#2. Be Prepared to Be Flexible
You finally find THE home. It checks off all the boxes and even comes with a killer natural light. You can’t wait to place an offer, so you call up your Realtor to start the process. Then you find out you’ve been outbid by hundreds of thousands of dollars. Prepare to have your heart broken a time or two in this market and realize that all seller pricing strategies are not the same.
#3. Move Fast
Interest rates are on their way up. So, if you’re considering buying this year, you need to start making moves ASAP. The rates are expected to increase to as high as 4.5% by the end of the year and … a little market expert insight … rising interest rates DO NOT contribute to decreasing prices.
#4. Find a Real Estate Agent
Nobody should tackle this aggressive real estate market without a qualified and experienced real estate agent. Your real estate agent can be your biggest weapon in terms of negotiating and finding properties before they’re listed. Interview multiple agents before settling and don’t just write an offer with the first agent you see or that offers you a kickback for writing with them (that very seldom works quite honestly). Like many other industries, the Top 5% of an industry have the tools, experience, savvy and ethics to help you truly succeed.
#5. Be Accommodating
In a seller’s market, you are at the seller's mercy. You must be open to accommodating the seller in terms of contingencies, closing date, possible rent back, and more. If you don’t want to play ball, they will move on to the next interested buyer — and trust me, there’s a line of them!
#6. Appeal to the Seller
It’s easy to get caught up and forget that there’s a human being behind the homes you’re looking at. Understand what the sellers want from their sale and try to appeal to those goals. If your realtor has a relationship with the seller's agent they may be able to better understand the seller's goals. That’s a massive benefit I have with a quarter-century of experience. Relationships create accepted transactions. Is it to get the most money for their home? Is it to move quickly or do they need to lease back the property? Tapping into that human side may help get your offer accepted.
#7. Don’t Give Up!
Trust me. I know how frustrating this process can be. I have personally bought and sold my own homes in every type of market. After being outbid time after time, you may want to give up … but don’t!
Keep your options open and your hopes high, and you will eventually find — and win the bid — on a home that will suit your needs perfectly. I have seen it soooo many times.
One final piece of advice …. When is the best time to buy? Just ask yourself this question … can you afford the mortgage and are you going to hold on to your home for at least five years? If so, the answer is always … now!
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