Getting a Handle on a Seller's Market When You Are a Buyer
Entering a seller's market as a buyer can be trying. Too much competition and too few homes can feel like you are pushing a boulder uphill. In seller market conditions, prices are going up...FAST. How do you get under contract with a property?
It starts with planning showings as far out as you can. Coming soon listings may not have interior pictures, but book your showing NOW. If you don't like what you see in the professional photos, cancel the showing. But in a seller's market, with pandemic precautions making it impossible to have overlapping showings, book the time as soon as you.
In concert with planning as far out as you can, you also need to be flexible. Don't make solid plans when house hunting is a top priority. I still remember the day, in a seller's market years ago, when the perfect home for my buyer can on the market. I called him and he was at a park enjoying time with his friends. By that time, we had lost so many homes that when I told him about what had just come up, and he asked if it could wait until tomorrow, when he heard me say no, he was in the car on the way to the home for the showing I had scheduled.
Once you have seen the home you want, write the offer with as few contingencies as possible. The higher the price range, the fewer contingencies buyers are going to have in the Bristow or Gainesville marketplace. First time buyer properties like townhouses may still be having inspections for informational purposes only and appraisal and financing contingencies, but don't count on it to be that way for all of 2022. If you want a home, you need to show you are serious. High earnest money deposits and low appraisal guarantees are ways just about every buyer can show their seriousness. If you don't need a financing contingency, don't ask for one. Don't need an appraisal contingency, don't ask for one.
If a listing comes up on the market on Monday, don't plan on it being available for you to tour that weekend. Get to that house as soon as you can. Out of town? Video tour with your buyer's agent. This market is moving so quick that those who snooze, lose. All the while, prices are going up and sellers are doing less and less to get their homes ready for market.
It isn't easy getting into a property in a seller's market, but the driver is often low interest rates. Prices may be high, but look at your monthly payment. Where rates are right now (January 2021,) buyers are paying more principal than interest on their very first mortgage payments! That used to be an event that happened YEARS into the loan.
Having an agent that is dedicated to your success and is well versed in the pace of the market is just as important. I'm one of those agents. If you want to talk about what you need to do to get into a Bristow or Gainesville residential property, give me a call and let's talk.