BLOG

Laura Key Laura Key

Advice For Buyer's In A Seller Market

The market is crazy hot right now! How can you as a buyer in a seller's market reach the goal of homeownership?

With the high demand and low inventory, what can a buyer do to make sure they're getting the best price possible. How can they best compete with other offers?

The first thing buyers need to understand is they MUST NOT get over emotional. With so many people feeling desperate to obtain a home they are willing to offer well over asking on homes. I have seen homes go $60,000 over asking price, only to hit a major bump when it came to appraisal. Be patient, be wise. Have your agent run comps for the area before putting an offer in on a home and be comfortable if you are not the highest bidder at the time. I have closed a lot of "backup" deals because the first accepted offer did not close. Patience is key, if you are in RUSH at this time then it may not be time for you to purchase.

Do you foresee the current housing inventory issue lasting throughout the near future? In your opinion what circumstances would need to change to get the market out of this inventory crisis?

Unfortunately, I feel this market is going to continue to rise and buyers will be shut out with the current pricing trend. I believe SELLERS need to be more educated about putting their homes on the market. They need to understand that the "highest and best" offer is not always the best offer. In order for this market to change, sellers will have to see that buyers can no longer afford. Once that happens the offers will stop coming in and prices will be forced to drop in order for the buyers to afford the home of their dreams. At some point, the market is going to break and until money is not flowing it won't change.

How has the business of your real estate partners been affected? Are they doing anything different to combat it?

Deeper business relationships are happening. It is critical that all involved are on the same page. This includes Realtors, Lenders, Title Reps, Escrow professionals and even vendors. When all pieces of the puzzle are present it creates a unified front all with a single goal in mind to assist the buyers and sellers.

What steps would you advise a potential homebuyer to take when buying in this current market?

Patience and strategy! These two elements are a MUST. If you qualify for $400,000 then you must look at homes that are at least $15,000 to $25,000 under that asking price. This gives you room to play without going over your budget and pre-approval. Do not let emotions get the best of you. Bidding wars cause people to "lose their minds" and this could cause many problems down the line with the deal and with buyers remorse. Never buy ABOVE your means. What use is it to have a home if you can't afford it? You want your home to be a place of peace and wonderful memories.

Read More