Buying In a Seller's Market, Part One
Updated: Feb 21
In the current housing market locally, and across the nation, demand continues to heavily outweigh supply. A strong influence in the market is the cost of building supplies and the effect that has had on building new homes, with higher average prices and fewer units available. The increased cost of new homes has also increased the demand for existing homes, driving prices higher and creating a more competitive buyer experience. We are experiencing a real-time demonstration of supply and demand. This trend is projected to continue through 2022.
As a buyer, what can you do to be competitive in these market conditions?
· Determine what can you afford to spend and how will you finance your purchase. In a sellers’ market it is critical to have your financing in place before you start looking at homes.
· The ability to deliver your offer quickly can be a key factor in getting the home you want. Increasingly, sellers are requiring pre-approval letters even before allowing you to see their property. Meet with your lender or ask your real estate agent for recommendations.
· Decide what you need in the property you want to buy. Will the number of bedrooms or bathrooms, finished square feet, storage, size of the property, among other categories, check the boxes in your “must-have” columns?
One thing people sometimes forget to consider when determining their needs is what condition the house for sale is in that they are willing to purchase. Do you want a move-in ready home or are you willing and able to remodel?
And what does move-in ready mean to you? For some people, it means put the furniture in place, hang the clothes in the closet, put the dishes in the cabinets and get on with life. For others, it may include painting a room or two and tweaking the landscaping.
Likewise, what does “willing to remodel” mean to you? Who will be doing the remodel work, professionals, or you? Does it mean painting the entire interior or gutting the kitchen and primary bathroom if necessary? Do you have a budget in mind for these projects, and contractors in mind to get them complete?
Securing your financing, determining the necessary characteristics you want your next house to have, and figuring out how many hours of time and effort, as well as how much additional money you will be willing to spend to make it your home will help you focus on finding the home you desire and successfully acquiring it. A Realtor® is an invaluable resource who can guide you through these steps.
If you have further questions about how to prepare to purchase a home in the current market, or, if you are unsure of how to start the process, I am here to help you. Set up a consultation today! Contact Link
My next blog will further unpack Buying in a Seller’s Market and we will look at forming your buying strategy. Until then, please subscribe, share and like this blog (if you do).