The real estate market is hot! We are experiencing high buyer demand and limited home inventory. As January 12, 2021, there are currently only 5,691 homes listed for sale on the multiple listing service. Of that number, only 4,001 are single family detached homes. The remaining are comprised of townhomes, condos, patio homes, and modular & manufactured homes.
Due to a variety reasons including low mortgage interest rates, increased buyer relocation, and slow starts on new build construction, we are experiencing a Sellers Market. This means for every home that is listed for sale there are likely 10-15 offers, sometimes more.
As a Buyer these are key mistakes you want to avoid to make yourself competitive in this market.
- ASSUMING EVERY HOME PRICE IS NEGOTIABLE
Buyer demand is high and home inventory is low. A Buyer should expect to be in competing offer situation. The list price has become the Sellers lowest expectation of what they will consider to sell their home. Rely on the expertise of your real estate professional to inform you on current market trends so you can make an educated yet competitive offer. Keep in mind, price is not always the winning factor when making an offer.
- NOT BEING PREPARED WITH A LOAN PREQUALIFICATION
If you are financing the purchase of a home, be sure you have a through loan prequalification. Spend the time before you begin home shopping, to meet with a loan officer to receive a full loan prequalification. This includes the lender having a complete loan application with supporting documentation of income & assets. This process will help you determine your home shopping budget, allow your real estate professional to assist you in writing the most competitive offer, and show the Seller you are serious about purchasing their home. If you are in a competitive offer situation you don’t want to be scrambling at the last minute to get your loan prequalification.
- LIMITING YOUR HOME SEARCH
With so few homes on the market, the more flexible you are with your wants & needs list the more successful you will be in finding the perfect home. Make a list of “must haves” and “would like to have”, once you start viewing homes with your real estate professional it will start to become clear where you are willing to compromise. Perhaps, expanding the location boundaries, or be willing to do some cosmetic improvements like paint & flooring. Cast a wide net and you will find more options.
- TRYING TO BUY WITHOUT A REAL ESTATE BROKER
Regardless of how competitive the real estate market is at the time you are looking to buy a home, it is key to have someone on your side. An experienced real estate professional will provide you with key market data, trends, and be able to assist you in making competitive offers. Beyond getting an accepted purchase offer, your real estate professional will assist you throughout the transaction protecting your best interest.
- HOLDING OUT FOR THE PERFECT HOME
We all have an idea of that perfect home that checks all the boxes on our wish list. However, unless you build a custom home you are probably going to make compromises along the way. Finding the perfect home is a process of elimination. Determine what you must have in a home and what you can live without. Remember, flooring, paint, and other aesthetics of a home can be changed.
This is a short list of mistakes to avoid. At Bella Casa Realty, we schedule Buyer Consultations with all our Buyers to map out their home buying strategy. We discuss current market trends, pitfalls to avoid, and help you set your expectations as you move toward the purchase of your new home. We also have a few tricks up our sleeves to help our buyers find homes where no one else is looking!
Contact us today for a hassle-free Buyer Consultation! It is never too early to start planning your next home purchase.