As a homebuyer in today’s market, you’re no doubt at your wit’s end trying to find your dream home. And when you find a home you love, you’re competing with all-cash offers and bidding wars, driving the sales price above what it’s listed for, and many times, even above what the home is actually worth! While there is nothing you can do to create more homes for sale, you can certainly arm yourself by understanding the trends and patterns in the areas you’re trying to buy in. While it’s not quite rocket science, there is definitely a significant competitive advantage to those who understand the real estate market trends. Sometimes, being competitive means not looking in the most competitive price ranges in the most competitive markets.
Buying a Home in a Sellers Market
A home buyer does not want to be caught off guard in a seller's market. It's one of the reasons that the most important thing a home buyer can do is trust his or her real estate agent to advise on market conditions. If it is a seller's market, it could be very difficult, if not almost impossible, to buy the first home a buyer wants to buy.
Because home buyers generally have very little interest in the real estate market when they are not buying a home, they don't always know how the market moves from one season to another, much less from month to month.
In a seller's market, a home buyer is unlikely to be successful using the same techniques practiced in a buyer's market.
Time is of the essence. Multiple offers happen with more regularity in a sellers' market than a buyer's market. That's because, by its very nature, a seller's market is defined in part by low inventory and lots of home buyers. A beautiful home that is priced well can attract more than one offer. Remember, you might not be the only buyer. So if you feel the home you just looked at is The One, act sooner rather than later. Sometimes the best strategy is grabbing it before more offers come into play.
Consider looking further than the city. In a blog I wrote in October 2021, Snohomish County Continues to Grow, I expressed how I felt regarding more and more people choosing to move further out of town to get not only more land but more house for their money. Also, it is less competitive, with fewer buyers competing than in the cities. More buyers most certainly drive up the house prices. But why stay in the city? The pandemic affording many people to work at home has permitted this migration to the suburbs. We see signs from many tech companies that remote work (at least in part) will be here to stay. By not having to drive into the city as often, residents have more freedom to buy more house, more land and enjoy the space that municipalities farther out in the county offer.
Another great tip is to make sure you (or your agent!) are on the constant lookout for homes on the market that fit your needs. You never know when your Perfect Home will be just around the corner. I would be happy to sit down with you and discuss what your home buying interests are. I can keep an eye on things for you, so you don’t have to! Feel free to call me anytime. 206-819-5137