Real estate markets change and sometimes that change can be rapid. During the Great Recession, home buyers got used to the terminology of a strong buyer's market. Now, several years later the tables have turned and here in Colorado Springs, we are in a very strong seller's market.
Since home buying and selling cycles are so long, our clients sometimes find it difficult to adapt. This pertains especially to our buyer clients who are either first time home buyers or new to the area.
Home buyers are having to learn a whole new vocabulary. In the past, it was terms like a short sale, foreclosure, auction and HUD home. Now buyers are having to contend with concepts like deferred showings, highest and best offer as well as "Coming Soon".
These terms translate into tactics created by listing agents in order to drive up demand as well as sale prices in strong seller's markets. As much as we'd like to vilify them, at the end of the day they're just doing their job.
This, of course, means that home buyers along with buyer's agents need to do their jobs as well. This involves understanding how these tactics work and positioning themselves to be the winning offer. Additionally, avoiding overpaying and the stress that comes with buyer's remorse.
It's important to remember that the basics still apply. This means home buyers getting pre-approved, having a clear idea of where they want to be and how much they want to spend. And probably the most important factor in successful home buying is finding a strong buyer's agent.
In addition to these fundamentals, there's a new layer of strategy that involves understanding home sellers and their listings agents motivations. The end goal is to maximize the price and conditions of a home sale period as a buyer it's important to not get caught up in the competition but keep your eye on the prize which is a new home. Successful buyers establish very clear edges around how much they're willing to pay as well as what kinds of concessions they're willing to make.
At the end of the day, it's important that home buyers stay focused on the goal of finding a home. the dream of homeownership is still a reality it's just not as easy as it used to be. if you want to be a homeowner in today's market you'll need patience and tenacity.