“The buying process has become one of preparation and patience. It’s even more important to be prepared before adventuring into today’s market because competition from investors and traditional home buyers is fierce. Being pre-approved and not just prequalified is very important. It’s also important to stay patient and not overpay due to current market conditions. It’s a seller’s market like one I’ve never seen before. Supply is low and because Nashville is the new hot spot demand is at an all time high.”
-Corey Hammonds, CEO/Founder, The Hammonds Group
In addition to the many changes that the pandemic brought to the real-estate market, many areas of the country find themselves in an ultra-competitive seller’s market. As interest rates have lowered, and inventory has dwindled, it’s been a perfect storm for a buyer-saturated market. People have had plenty of time to prepare for the prospect of buying, and many come armed well prepared for a quick home purchase. Due to this, it can be hard to Per Forbes, here are some of the best practices for your home-buying venture, and what to look for during your search.
If you’re shopping for a home right now, the bad news is so is the rest of your area. Activity is incredibly high, and the seasonal shift into the fall may bring on ever more interested parties flooding the market. This has led to an extremely-low inventory, and the two factors have fed into a loop that has led to rising prices. As a buyer, patience and haggling are a thing of the past. It can be hard to lock in a deal, and getting a discount has largely gone away, requiring an extra amount of decisiveness from buyers. When buying, have your priorities, your budget, and your search system set, and you’ll find success.
Set Your Budget Lower, and Bid Up
While you’re still free to explore homes right at the ceiling of your price range, you may find more rejection than normal, being beat out by those who can offer more. By looking at homes lower than your absolute limit, you have room to bid up, and can remain within a comfortable position for you financially. In the current market, there are stories of multiple, even up to dozens of bidders for a single home, which is what is causing the asking price phenomenon listed above. Feel free to look at homes at your ceiling, but be prepared for the potential of being consistently outbid.
Agents Matter More
While having a great agent never went out of style, it’s even more important in this market based on speed. An excellent agent will be your negotiator, local expert, and proactive seeker for the perfect home for you. If you choose to, you can exercise a great deal of control when choosing your agent, researching reviews, getting recommendations, all of these actions will ensure you make the right match. Some quick hits to emphasize:
- Experience – How many properties they sold in the last year.
- Neighborhood Awareness – How well do they know the area you’re looking for.
- Acceptance – How will you help my offer stand out?
If you like the direction your realtor has for you based on your research, you’ll be ready to begin your search!
There are plenty of tools to secure a home you love in this market, it may just take some concessions and perspective to get there. Being practical, patient, and prepared will help you secure a sale at a cost you can manage, and while the market may be stressful, these tips will help you get across the finish line.