The lack of homes for sale has been hard on today’s buyers. This has created an environment of bidding wars, offers on multiple homes, and discouraged buyers. The lack of inventory has been plaguing not just our area, but the entire country. It’s not all bad news, though, because we have some tips to help you get the home you want in a time of no inventory.
Get Prepared!
You can’t go into war without being prepared, and the same goes for buying a home in this current environment. While buying a home is not an actual war, there have been quite a few bidding wars occurring amongst buyers. This means that homes are receiving multiple offers, with many of those offers exceeding the list price.
Below are some major areas you will want to be prepared in when starting the home buying process.
Finances/Lending
Before you can even think about buying a home, you should make sure your finances are in order. You will want to make sure that you are paying your bills on time and have proof of income. Many lenders have requirements when it comes to debt-to-income ratios. This does not necessarily mean you need to pay off all debt before buying a home. A local, reputable lender is the very first step and can help come up with the best strategy for your individual needs.
You will want to get pre-qualified before even looking at homes. Not only will this help you know what you can actually afford, but it will strengthen your offer and show the seller that you are a serious buyer. Lacking pre-qualification can mean the difference between winning or losing a home. We have several amazing lenders that we highly recommend to our clients!
Prioritize
With such fierce competition among buyers, you may want to create a list of your “must-haves”. Prioritize your needs versus wants. For example, do you need 4 bedrooms? Do you need office space or is that a want? Do you need a fenced yard or can you fence it in later? You’ll have to determine which items are deal breakers and which items you can live without. Having this in your mind from that start may help narrow down your search. But remember– being too picky may make finding you a home more difficult.
Right Team
Having the right team on your side can also make all the difference. Having that expertise and someone willing to fight for you can help you win your dream home. We can set our clients up on the MLS to get notified as soon as a house comes on the market that meets your criteria, this way you won’t miss out on a potential home.
With over 29 years experience, The Van Wieren Team will utilize numerous winning (and proven!) strategies to negotiate on your behalf. (Ask us– we can’t give away our secrets to the competition!) We help take the guesswork out of the process, manage all of the details, and make the process as smooth as possible for our clients. We will also help keep your emotions in check to remind you of your wants versus needs, ensuring that you are making an offer on a home that truly fits your needs. Our goal is to be there every step of the way!
Making Offers
In order to win your dream home, it’s more important than ever to make a fair offer. Our clients will need to be serious and ready to jump on a home that they love, and we will be ready to help you win it. It’s common to want to get a “deal” on a home. But that could also mean losing out on your ideal house. Your expert realtor will be able to help you make an informed offer based on comparables in the area, the condition of the home, and other factors.
According to one KCM article, “the latest Realtors Confidence Index from the National Association of Realtors (NAR), the average property sold today receives 3.7 offers and is on the market for just 21 days. These are both results of today’s competitive market, showing how important it is to stay agile and alert in your search. As soon as you find the right home for your needs, be prepared to submit an offer as quickly as possible.” In fact, the median time on market last month was only 3 days and the average time on market was 15 days in the Pikes Peak Region.
Serious buyers have to be ready when the perfect house comes on the market, and when it does, we’ve got multiple strategies to help our clients win! Please contact us to see how!
Winning Mindset
It’s also important to be patient and flexible when searching for a home. With such low inventory, there just aren’t a lot of options for our buyers. So that may mean being a little more open-minded, which could mean expanding your search area or having less requirements in a home. You may also need flexibility when it comes to negotiating offers. A seller may want to counter your offer, or they could reject it altogether. Your realtor will guide you through this and will have your best interests at heart. After all, we represent YOU. We will do all that we can to help our clients, but having clients that are patient and flexible can help keep the home buying process a positive experience.
Buying Before You Sell?
Worried about your home selling fast but then not having a place to go while you’re searching for your next home? We have a program designed to help you buy your next home before selling your current one! Our very own Mary Barkley is certified to help our clients do just that! You can get the certainty of buying the new home you want first and then selling your old one. If this sounds like your situation, please reach out to us so we can get you into a house that better suits your needs!
For Sellers
If you are thinking of selling your home, NOW is the time. With record-low inventory, homes are being swooped up in a matter of days. You might be surprised at how much equity you actually have in your home to help you move into your next one. Plus, we can utilize the program mentioned above to help you buy before you sell.
According to the latest data from CoreLogic, as of the fourth quarter of 2020, the average homeowner gained $26,300 in equity over the past year, and that number continues to grow as home values appreciate. Equity is a type of forced savings that grows during your time as a homeowner and can be put toward bigger goals like buying your next dream home. You may find that your current home no longer fits your needs after working from home for the last year or having multiple kids at home doing virtual school. Now is the ideal time to use that added equity to move into something that better fits your family’s needs. We’ve got strategies to help you get the most out of your home to put towards your next home!
If any of these sound like your situation, please give us a call! Whether you are looking to buy right now, in 6 months or in a year, we can help put you on the path to home ownership! If you are a seller, we can give you a free market analysis! Let’s help you determine the best strategy to get you the most for your home! Let’s get you that dream home in a time of no inventory!