Everyone knows the basic law of economics – when supply is down, demand goes up and that’s exactly what is happening with our real estate market. It’s actually happening across much of the nation and buyers everywhere are finding they need pull out all the stops to get the home of their dreams. That doesn’t mean you have to pay a lot more but it does mean you need to be smart. Here are five things successful buyers in today’s real estate environment do when there are a lot fewer homes and many more buyers.
Compare Renting Vs. Buying
Many people don’t realize how much more feasible it is to buy rather than rent a home. The only way to really know where you stand is to evaluate all your options. Savvy buyers know that it is not a dollar for dollar comparison. There are tax advantages to owning a home plus the intrinsic value of homeownership is also a big plus. Why pay someone else’s mortgage if you can build equity in your own home?
Hire a Professional To Assist in the Purchase
Now that you have decided that purchasing a home is the right decision for you, it’s time to find a good Realtor® to help support you. Not only will they be able to share their industry knowledge and market trends that will help you make informed decisions but also you will have an advocate. He or she will help you achieve your goals, acting on your behalf and in your best interests. Contrary to popular myth, there is hardly any “deal” to be made by going directly to a listing agent. Smart buyers know they need a professional on their side.
Complete a Needs Analysis
To buy a home in a market where there are fewer homes than there are sellers, means that you must know what you want, what you are willing to forego and what you absolutely don’t want. To accomplish this it is a good idea to put together a list of those items in an in-depth needs analysis. That way when a good home that is priced right and located in a great location becomes available, you’re ready to weigh its pros and cons. Successful buyers these days are focused and are able to discern deal breakers from the smaller things.
Line Up Financing
With sellers in control and often receiving stacks of offers on their homes, they expect them to be accompanied by proof of your financing. Whether that means a proof of funds letter showing you have the cash on hand, or a preapproval letter from your lender demonstrating they are willing to lend you money – offers that get sellers’ attention are the ones with all ducks in a row. Additionally, you may or may not realize your options and a conversation with a lender will help you clarify which loan options work well for you.
Evaluate the Market Objectively
Finally, it’s important to be able to evaluate the market with an objective perspective. View properties and analyze the data with an open yet critical mind. Look at market trends and understand how they can potentially shape your own home buying experiences. Your Realtor® will be able to help by providing easy to read, useful market reports that point to current trends in your marketplace.
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If you are looking for your next home – I invite you to contact me today. I support many buyers’ home purchase endeavors and look forward to the opportunity to help you with yours!
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