Buying in a Sellers Market, Part Two
In my last post, we spoke about the current housing market and ways buyers might prepare to be competitive. Now, let’s look at strategy in your preparation.
Options can range from move-in ready condition to complete overhauls, although significantly fewer choices of both are currently available. Limited inventory also limits geographic options. As a buyer in this market, you need to determine what condition house you will to take on based on your needs, budget, and abilities, as well as locations you are willing to live.
Do you want a home that is move-in ready or a “fixer-upper”? Purchasing a house needing work requires planning and consideration. Will the time, money, effort, and sacrifices in other facets of your life be worth it when it’s done? Can you live there while remodeling, or will you need to live elsewhere? Are you going to manage projects or hire a contractor to coordinate the work? How much will it cost? How long will remodeling take? How long do you plan stay in the home? These are some questions to consider in determining your buying strategy.
Let's look at an example:
House A is a 3-bedroom, 2-bath home, 2,600 sq. ft. located in a neighborhood you like. It’s listed for $425,000 and it checks almost all your boxes, but there are a few “like-to-haves” on it lacks.
House B is a 3-bedroom, 2-bath home, 2525 sq. ft., located in a different, but equally desirable neighborhood for $370,000. The kitchen needs updating, and the main bathroom will need to be completely remodeled. This house would be able to check off those last couple of “like-to-haves” on your list.
Which house gets your offer? If you have thought through the above questions, you'll know which house would be a better choice for you. If you haven’t, you'll have a very short window (sometimes only hours) to evaluate, crunch numbers, make your decision, and submit an offer in time. It could be worth the money to avoid remodel. On the other hand, a house with potential at a lower cost could allow you to gradually pay for upgrades.
Today’s rapidly paced market means you must be prepared. Successful buyers have their pre-approval letters in hand prior to showings so they can quickly submit offers. In their efforts to win properties, many are making offers at list price or above, sometimes adding escalation clauses. In some cases, buyers are even waiving appraisal and/or inspections to gain consideration from sellers. I will be unpacking the pros and cons of these
tactics in a future post. This is where your realtor is your best partner and guide to achieving your goal of home ownership. #realestate, #buyingahome, #sellersmarket, #newhouse, #buyingstrategy, #financialplanning
To learn more about preparing to purchase a home in the current market, or, if you are unsure of how to start the process, contact me today—I am here to help! https://www.mocosellscomo.com/contact
Next week: Selling Your Home in a Seller’s Market