Inventory is shrinking and prices are rising. The economy is chugging along well, but now interest rates are going up, a full 1% in the past month. But don’t fret. It’s still a great time to buy. Interest rates are still very low and homes are still a great value, and with prices rising, there’s a good chance you might actually gain equity over the next few years. But I’m not going to lie. It’s a tough market for buyers right now. The low supply of homes on the market is frustrating many buyers who are not prepared for the current market conditions. Becky and I are advising all of our buyer clients to have a strategy.
The best homes on the market are seeing offers within days of entering the market, sometimes faster, and often with multiple offers. Sellers want to know that the offer is coming from a buyer who will be able to close and will often choose a lower offer with a pre-approved buyer or a bigger down payment. You don’t want to miss out on a great opportunity. Get pre-approved before even looking at homes.
Use an experienced Real Estate Agent
With the tight time lines we are seeing in real estate transactions this summer, you will want an agent with experience who can swiftly guide you through the process of searching for a home, making an offer, and supporting you through the closing process. Be prepared to act quickly. When new listings come on the market, you need an agent who will be available to show them to you within 24-48 hours or you may miss your window of opportunity. Understand that you may need to make a quick decision on whether you want to write an offer.
Make a strong offer
We are no longer in a market where buyers have the upper hand. It is unwise to think you can write lowball offers. I am seeing a lot of multiple offer situations this spring/summer. Be ready with your best offer and consider offering more in earnest money or down payment. Keep in mind that many sellers are still in a negative equity situation and may not be willing to give you seller paid closing costs and a carpet allowance and may choose a competing offer that doesn’t ask for it.
John Durham - 651-231-2191 firstname.lastname@example.org
Becky Durham - 651-231-2192 email@example.com