If you are looking to buy a home right now, you're probably finding that homes are selling extremely fast and for much more than they are listed to sell. You go to an open house and the lines are out the door and around the block - no kidding! You know friends and family who have put offers on 10 houses and still haven’t been able to land that satisfying “Accepted Offer” Welcome to a seller’s market.
A seller’s market is when inventory of homes is very low and there are multiple buyers for that particular style and size of home. This demand drives prices up, and buyers are throwing caution to the wind on inspections, appraisals and mortgage terms to get their dream home. So it begs two questions: First - how does this affect buyers trying to buy the homes? Second, how long can this market last without some reprieve?
For the past few years our inventory has tightened and all while mortgage rates have dropped feeding the what seems like insane bidding wars we are seeing all around the country. Here in Massachusetts it feels like there are upwards of twenty buyers per house when priced right. We have seen offers come in tens of thousands of dollars over asking price with not a contingency in sight. This diminishes offers from the average first time home buyer who has a small deposit, a traditional or renovation mortgage and inspection and appraisal contingencies.
If you have been trying to put offers in and keep getting turned down there are options to make your offer stand out. While price can be a determining factor it is not always the only factor. Many sellers have been living in their homes for many years and might have sentimental attachment to the homes, so writing a heartfelt letter of how you see yourself in the home might help. If you cannot remove contingencies like other buyers, try shortening the window of those contingencies and work closely with your real estate team to see how quickly they can close the deal.
Another thing to consider is looking at homes that have been on the market for a while, normally it is because of price or certain needs for repair.
By thinking outside of the box you would be surprised on what home you could potentially purchase without having to go so far over asking and dropping your safety guards.
Refined Home Services is perfectly set up to cater to customers like this. With having our design and construction team in house we are able to guide you through the process of doing repairs of a home that may be the right location and size but just needs some updates.
We are not sure how long this seller’s market will last but by having an open mind and a team that can help you visualize the potential of each property, your path to home ownership is closer than you think.