Reality Check: Buying in a Seller’s Market

So you’re thinking about Buying a home in a “Seller’s Market?”

Here are a few homebuying dreams that may need a reality check today.

1. Your dream home will have everything you want

Since our inventory is unusually low and has been for the past couple of years, the “perfect home” at a “great price” may not necessarily exist. It’s important to go into your home search with a more open mind than we have in the past.

2. There’s time to find a mortgage after you find the house

It is always advisable that you obtain mortgage approval, or if paying cash, have that Proof of Funds Letter on hand. Once again, with the limited inventory on hand, it’s not uncommon that you may be competing with other Buyers and what will set you apart and show the Seller that you are ready and able to purchase their property.

3. You can handle the homebuying process on your own

Thanks to the internet, you can do preliminary sleuthing without a real estate agent, and it’s a great way to educate yourself about the market where you’re searching. But beware: There’s no substitute for an agent’s training, guidance, and experience. 

4. The seller will fix any issues that come up in the home inspection

In this market, with multiple offers in play and backup offers at the ready, Sellers have been less inclined to go to the expense of many repairs. Expecting a seller in a competitive market to address every line item is a delusion that could cost you the house.

5. The asking price is probably what you’ll pay

Oh the days of negotiating the price down are long gone. In this competitive market, we see a supply and demand scenario. That being said, be prepared to offer above asking price!

6. Can’t find the right house? It’s easy to build one instead

This is a great concept, but in reality, Builders are encountering supply and demand issues for materials. With supply chains interrupted, many Builders are struggling to get simple things in; such as, windows or appliances. As a result, even pricing new construction is inhibited. For example, if traditionally a new build ran around $150/sf, because of the uncertainty of materials, much less the price of materials, Builders are often having to price a home after it’s at a certain percentage of completion. This means, you may not know what you will actually pay for the house until it’s complete.

Ultimately, do not worry about maneuvering in this market. With my experience, training and expertise, I can help you throughout the

So

home-buying process.

Sources: 6 First-Time Homebuyer Hopes and Dreams That Are Completely Delusional Today

 By Erin Flaherty

Nov 8, 2021

Realtor.com