The National Association of REALTORS® has recently announced that there's a housing supply shortage. Homes are selling quickly and home prices are starting to rise again. It's becoming a seller's market. Any time the market changes, it's a good idea to change strategies. During a buyer's market, buyers have the upper hand and can make more demands on sellers over their homes' price and condition. During a sellers' market, however, buyers concede the upper hand to sellers and are more willing to accept higher prices and terms. When homes are in short supply, buyers don't have the luxury of taking their time, writing lowball offers, demanding every little thing be fixed, and shopping for homes with multiple real estate agents. Do these five steps instead.
Make a good first impression. Not only do you need to impress sellers, you need to impress the real estate agents. Hire one agent and let him or her profile your needs in the marketplace. Be specific about your must-haves so you don't waste your agent's or your time viewing homes that lack what you want most. When you find the right home, send the seller a letter along with your offer outlining why you love the home.
Get preapproved by a lender. Not only will you know how much home you can buy but you'll be ready to make an offer quickly. Your real estate agent can include the fact that you're preapproved by your lender with the offer, which will carry weight with the seller.
Shop within your price range. In a seller's market, it's best to shop for homes within or slightly below your price range. This will give you more room to make full-price offers or above in case the home you want is in a bidding war with other buyers. Trying to buy a home out of your reach during a seller's market will only cause you and your agent tremendous frustration.
Be flexible. No home is going to be perfect. To get more home for your money, you might shop for an older home that needs some renovation. Try to look past ugly wallpaper and stained carpet and visualize the home with more attractive finishes. You may be able to get more space in an established neighborhood than with a newer home that is priced higher for similar square footage.
Be ready. Be ready to see a new listing at a moment's notice. Be ready to make an offer when you believe you’ve found the right home. Once a seller has accepted your offer, proceed as if you're in a normal market. Set a reasonable closing date that accommodates the seller as much as you can. Confirm the offer with your lender. Schedule the inspections you'll need and don't nitpick the seller over the small things.
Whether you're in a buyer's market or a seller's market, you should feel good about the home you choose, the deal you make, and the courteous way you treated all parties involved in the transaction.
If you are in the market for a new house and would like information on homes for sale, or are first time home buyer not working with a Realtor and would like to schedule a consultation with a qualified Oakland County and Macomb County Realtor, please complete the Lang Premier Properties contact form to have a real estate agent contact you.
Lang Premier Properties are Birmingham Realtors specializing in Oakland County Real Estate. Stephanie is an agent with Lang Premier Properties. See what past clients have to say about Stephanie Lang. Lang Premier Properties looks out for your best interests when you purchase a new custom luxury home. We always recommend working with an experienced luxury real estate agent when buying a new luxury estate.