Lower Inventory Levels Prompt Many Sellers In Waiting to Get Off the Fence
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As we move closer toward the summer months, more and more sellers are beginning to see how quickly some homes in their neighborhoods are moving off the market. In fact, buyers today are eager to lock in the still very low and near historic interest rates that are bound to rise within the next year. Here are just a few of the advantages sellers in a low-inventory market.
Multiple Offers
It goes back to the basic law of supply and demand; the fewer inventory there is, the more homes are in demand. With fewer homes on the market today, particularly well priced homes in good condition and in good locations, buyers are on the prowl and they know not to waste too much time. Many sellers these days are receiving multiple offers, giving them a choice in the matter – whether to choose a buyer that has a stronger financing outlook or fewer contingencies or better timing.
Fewer Contingencies
Buyers know that in order to get their bid accepted, they have to be flexible. One of the ways they do that is to offer fewer contingencies on their purchase agreement. Whether this means a buyer willing to take less time for inspections or waive some contingencies altogether, for the seller this translates to more assurance the transaction will go through smoothly.
Fast Turn-Around
Days On Market is a statistic closely studied by real estate agents as a measure to gauge market interest in a property. With more buyers on the lookout for good homes, fewer homes available for sale quickly reduced the total number of days on market before going under contract. A seller’s market gives you the benefit of knowing you will likely sell your home relatively quickly.
More Money
It goes without saying that sellers want top dollar for their home. Once again, with buyers out there vying for the same few good homes that are on the market, naturally they want to get the home of their dreams so they are willing to offer at or above asking price. Get more than one buyer on the table and price wars start to ensue.
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Right now, for the first time in years sellers have the upper hand. Why wait until the market starts to shift again and you no longer have an edge? It’s a great time to sell right now. Call us today and we’ll gladly provide you with a home value report that will tell you what you can expect to get for your home in today’s marketplace.
Be Un-Emotional When Buying a Home In Order to Get the Best Value!
Want to break your heart and your bank account at the same time? Then buy a new home based on the fact that you've fallen in love with it!
Needless to say, you should never do this!
In some cases, when you fall in love with the "pretty face" of a house, you fail to look underneath and find problems like bad wiring, leaky roofs, bad foundations, etc. This is an extremely expensive way to buy a home!
A funny and sad example of this is shown in the 1986 film, The Money Pit, starring Tom Hanks and Shelley Long. They make the mistake of falling in love with a home and think they're getting a $1,000,000 property for only $200,000.
Once they get into the home, they find out it'll cost a million to repair it! It's got wood rot, a bad roof, bad plumbing, bad electricity, even bad raccoons!
Well, that's Hollywood exaggeration, of course. After all, The Money Pit was a comedy. But, when things like that happen to you, it's no joke. Repairs can cost you a lot of money and heartache, not to mention dangerously rising blood pressure!
So, again, never ever fall in love with a house at first sight! Easier said than done, you say? How do you avoid this tendency? Below, I offer some solutions to the problem!
Solutions 1: Get Cold Hard Facts about the Home!
When I talk about "cold, hard facts," I'm talking about getting the house evaluated by a certified home inspector.
It's well worth the money to have this job done because the inspector will cast the objective eye you lack on the property. He or she will evaluate every aspect of a house - roof, plumbing, wiring, foundation, etc.
The cost of a home inspection varies with the region of the country. Nationally, they range from $200 to $400. But, for the investment of, say, $200, you prevent yourself from losing thousands of dollars in repairs in two ways.One, you can simply walk away from the deal. Or, two, you can require that seller fix all items before you sign a contract!
Bonus: Often, you can ask that the seller pay for the home inspection!
Solution 2: Cool Off and Take Your Time!
Infatuation with a home is fun and exciting, and you can have the overwhelming temptation to buy an attractive home practically "on the spot."
My advice - walk away and come back several hours later, especially after you've viewed other properties! By then, it's likely you'll have a more objective eye.
Solution 3: Keep It Simple!
By this I mean that you should stick within your price range. You want the best hom e at the best price within your means! So, if you see an outwardly gorgeous home at, say, $10,000 above your price limit, say, "I love you, but you're way too pricey for me!" and walk away from the temptation!
Solution 4: Rely on Your Realtor!
At heart, I and other professional realtors like me, want you to have a home that meets your needs in the best way possible. That means preventing you from buying a home that's in substandard shape and/or beyond your means.
To be perfectly blunt about it, I rely on great word of mouth from satisfied customers to make the most of my real estate career. So, you have my promise that I'll do my absolute best to get you into the house of your affordable dreams!
Need that objective eye to help you make a smart home-buying decision? Contact us today.
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