Blog posted On April 24, 2018
Home buyers are hearing a lot about the “seller’s market” this spring – but what exactly does that mean? A “seller’s market” occurs when the housing supply dips below a six-month supply. Based on February’s existing home sales data, it would take just 3.4 months to exhaust all existing home inventory. Many metros around the country today do not have enough homes for sale to meet buyer demand, creating an increasingly competitive market. Some home buyers may be wary to enter today’s competitive market. However, there are ways to stand out in a seller’s market and get an offer accepted.
Are you looking to buy a home this spring? Personal finance website, NerdWallet, surveyed real estate professionals and came up with these top tips for home buyers to stand out in a seller’s market.
Expand Your Search
Broadening your mileage outside the city center will give you more options to buy. Expanding your search does not just mean searching in a larger area, it can also mean reconsidering other properties. Considering a home in need of renovation or a “fixer upper” can also help open the market to more available properties. Some financing options are also available to combine the cost of renovation or repair with the monthly mortgage payment.
It’s not just a night and weekend market! When a listing agent asks when you can see a property, ask them about the first available time. Arrive early and take advantage of any extra time with the listing agent or sellers. Work with an established real estate professional that knows your local area. A connected real estate professional can help you meet listing agents and let others know you are looking.
While homes are required to pass a home inspection, removing other contingencies can help expedite the home buying process. If the home requires repairs, consider setting a threshold for how much you are willing to spend compared to how much would cause you to walk away. A real estate agent interviewed by NerdWallet explained, her clients typically set this threshold at $10,000 to $12,000 to let the seller know they are serious and would only walk away if an irreparable defect is found. Before removing contingencies, consult with a real estate professional. Contingencies are in place for your protection.
Mortgage rates are expected to continue to rise this year, but not as drastically as the first quarter climb. With rates leveling out and more home sellers entering the market, spring buying and selling season is in full swing. Stay competitive, even in a seller’s market, by being prepared. Getting prequalified or preapproved with a mortgage lender before starting your home search is another way to show sellers you are serious.