How to Buy a Home in an Extreme Seller’s Market
The pandemic played an important role in creating new rules for those searching for a home. As this can make the home purchasing process feel challenging, finding a home is not impossible! If you are currently looking for a new home and looking for some advice, you have come to the right place! We are going to go through some advice given by real estate experts!
Home-buying activity is hot, and will likely get hotter as we get closer to the spring buying season approaches. During this time last year, we were in a situation where more buyers were gearing up to search for a new home in the spring. We currently have buyer activity, but it has naturally slowed down due to the Holiday season. We expect buyers will hit the market strong when spring rolls around, as housing inventory begins to grow. We anticipate more homes to hop on market trends and take advantage of the seller's market. However, we believe the number of buyers will out-weigh the homes coming onto the market, which will keep prices higher than usual. So, if you are in need of searching for a new home and not sure how to handle the market, take our advice!
Next spring, we will not see the normal “spring spike” since the market is currently busy, and the pandemic is continuously influencing how people buy and sell homes. Although interest rates are predicted to inch their way up, inventory will still remain low. We believe we will continue to see multiple offers and homes selling well over the asking price. Despite the low inventory, more and more buyers are jumping into the market head-first. So, we are here to prepare you before you dive into the market blind.
So, how can you function as a buyer in a strong seller’s market?
Many clients tell us they are losing out on the opportunity to purchase their dream home. This is based purely on competition, but how can you, as a buyer, manage this competitive market? Well, the supply/demand imbalance is to blame, and this is not new. For the past year, we have seen a severe imbalance in supply and demand, which has shifted the mindset of many buyers on what they consider to be their “dream home.” Instead of searching for everything desired in a new home, many buyers have shifted into understanding their “needs.”
Don’t fall in love with just one home.
We advise against developing a fixation with just one home. This may not work out due to the influx of buyers within the market. Keep an open mind through your home search, and eventually, you will find the perfect fit! As stated in a previous blog post, “buying a home is similar to finding a mate.” If you fall in love with one at the first showing, you may set yourself up for disappointment or bad financial decisions due to desperation. Jumping into the market right now as a buyer, you should always keep an open mind.
It’s not always about price.
When searching for a home, look beyond the price. We have the agents who will find out what (beyond the listing price) is important to the seller. Having a real estate professional walk you through each of these steps sets you up for an advantage while going through the bidding process. Sometimes, it’s best to write up a letter to the seller explaining why you love their home. All in all, your agent will help you the best they can to purchase the home of your dreams.
Expand your search.
The most sought-after neighborhoods are those that also come with a larger price tag. So, expand your search and look at homes in and around your area. Start by identifying the details of your “dream home” and broaden your search. What do you personally like about your dream home: the kitchen, nice restaurants, great school district, etc... Whatever features you value, try and find them in areas you may have not explored. Many buyers overlook beautiful homes with great schools based on popularity or “buzz.”
You need to keep an open mind and look where you haven’t thought of through your home search. Purchasing a home in a seller’s market can be tough, but with these tips in the back of your mind, you should be able to find the perfect home! If you are looking for a home, be sure to contact us, and we will set you up with a buyer’s agent that carries the knowledge. The Skender-Newton team works for you!