If you’re in the market to buy a home, you may have heard that we’re in what some consider to be a sellers market. In short, when there are more houses on the market than there are buyers looking at them, then we’re in a sellers market. So, why does this matter to buyers? We’ll explain how you can benefit as well as what precautions to take in this buyers guide.
How do you know if it’s a seller’s market
During a seller’s market, it is much easier to find a house and get your offer accepted. There are less houses on the market than there are buyers, making it difficult for homeowners to sell their homes at prices they want.
A seller’s real estate agent will list a house at its list price and can expect to receive several offers from prospective buyers who believe they can purchase and resell at a profit.
All sellers prefer a quick closing; you should be prepared to close in as little as two weeks if your offer is accepted.
Compare Features and Amenities
Each real estate agent is unique, with different strengths and weaknesses, just like each property. Before you start your search, it’s a good idea to look at some of your top choices and take note of their features and amenities—if they can provide what you want out of a new home or apartment, they might be worth paying more for.
You should also keep in mind that some agents specialize in certain neighborhoods or have access to better resources (or referrals) than others. While real estate may be their livelihood, an agent’s earning potential can vary widely depending on how much business he brings in.
Buyer Beware (in any real estate situation)
When you’re a buyer in today’s real estate market, it’s imperative to make sure your expectations are set correctly.
While recent trends have shown a slight decline in inventory and a rise in prices—known as a sellers’ market—it’s important to remember that most markets fluctuate over time. This means you can expect prices to drop (and then rise) once again, which will likely coincide with an increase in inventory.
If your expectations are set too high, you could easily miss out on making an offer on what turns out to be your perfect home. In other words: Buyer beware!
Don’t Over-Improve on Your First Home
When you’re in a sellers’ market, and homes are flying off the shelves faster than they can be shown, it may seem like all you need to do is show up with your checkbook. However, if you go into a purchase without understanding what a sellers’ market means, you could end up overpaying.
Understanding risk is crucial to buying in a sellers’ market. Here are three tips on how to understand risk when purchasing a home in a sellers’ market:
- 1) Don’t fall for emotional purchases.
- 2) Do some research.
- 3) Have an exit strategy.
Understand the Risks When Buying
A sellers market means you’ll have more competition when looking to buy, but not necessarily a higher number of properties to choose from.
That doesn’t mean you should stop looking – if anything, it’s an opportunity to strike while prices are still low and interest rates are still high. While there may be more competition, what matters most is having an agent who understands how to navigate a seller’s market and can protect your interests as well as educate you on what to expect from both sides of a transaction.
Make sure your realtor has experience working in California real estate markets; after all, it isn’t quite like any other state out there.
Make sure you get the support you deserve!
Real Estate Transactions can be tough to navigate. That’s why it’s important to have someone you trust that has you back! Feel free to shoot me a message if you need any help with your current real estate transaction or if you are thinking about buying or selling a home!