Buying a Home in an Inventory Crunch
All you have to do is take a look around. Real estate is back in a big way, we’ve now seen 20 consecutive months in a row of appreciating home values. Even though home buyers are back in the game, in most markets they’re facing a shortage of inventory. In certain areas buyers are losing out to other buyers.
When buyers face a tough market they need to think outside the box, but no matter what buyers need to have a local RE agent, your local RE agent will help you and help you be creative, especially when it’s a seller’s market.
Don’t Avoid Overpriced Listings: A major complaint among listing real estate agents everywhere is working with a seller who’s out of reach about their home’s selling price, especially in a seller’s market. Sometimes this can be used to the buyer’s advantage.
The reason why Listing agents complain about overpriced listings is because they sit on the market until the overpriced home lose its appeal, which usually takes about seven weeks to happen. Once the home sits on the market long enough, the property may not show as well, the seller doesn’t keep the property as tidy as it should be, and the disappearing curb appeal, along with an out of reach price keeps buyers away.
As weird as this may sound, many sellers will not list their home at a lower price but will sell it at a lower price. Eventually, all unrealistic sellers have to breakdown and reduce their price. There’s “usually” a tiny window of opportunity before the seller breaks down and reduces the listing sales price. This is a fantastic opportunity for buyers. Go in with an offer before the first price reduction, if possible. But, as soon as the sellers do drop the price, other buyers notice, too, which brings the competition back.
In a tight real estate market, you have to think outside the box. In a hot real estate market, most active buyers spend months before they find and buy the house they were looking for. Until there’s an influx of sellers and there’s a healthier supply of homes for sale, buyers will probably continue facing a competitive market. That’s why it’s invaluable to make sure buyers have a local agent working with them trying everything to uncover opportunities for you. Hire the best local real estate agent to beat the competition and take advantage of a favorable home buying experience.
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