2020 is still going to be “The” Year
“I have a client that is looking for a 3 bedroom 2 bath home under $150,000 in <Insert favorite school district here>. Does anyone know anyone thinking of selling?”
We have all seen that post on Social media by the Realtor in our friends list. Realtors are doing everything we can to find a home for our clients. Is it not crazy that we have to go to these lengths to find property that is not even for sale yet? Inventory in that price range is extremely tight and some properties are going under Contract within 24 hours.
The good news is: the summer market is heating up, buyer traffic is increasing, and mortgage rates are at historic lows. Sellers need to know that they could be missing out on the real estate opportunity of a lifetime.
*56% of homes sold in April 2020 were on the market for a month or less-NAR*
The combination of low inventory and high buyer demand is creating an environment where homes are flying off the market. This is also a good indicator that while certain parts of the economy remain frozen, real estate is not one of them, and the pandemic has not slowed eager buyers from acting.
This is all great news for sellers, but what about buyers? There are some things that buyers need to do to prepare themselves for a home search in these times of low inventory. The key is to be prepared. Let’s take a look at how to be ready.
- Work with a full time Realtor. You need someone who will have the skills, the drive and the resources to find the property you want and the ability to act quickly when the right property comes available. You do not want to work with a Realtor that can’t show you a home until they get off work from their day job or can’t meet you until the babysitter shows up. My team always puts the client first.
- Get pre-approved. Work with a lender that can tell you what you can purchase and where. With the many loan options out there, there are certain areas that do not qualify for certain loan programs. A good lender is a Realtors best friend. With such a short market time some homes get multiple offers quickly and the ability for a buyer to submit an approval letter with the offer can sometimes be a game changer.
- Once you’re ramping up to buy a home, it’s wise to not make any—I repeat, ANY—major changes in your life or, most important, your finances. Do not switch jobs. Do not buy a new car. Do not even buy furniture or apply for a new credit card, which could affect your credit, just a credit pull alone from a car dealership or a furniture store is enough to affect your credit score and could cause you to lose your dream home. This is a sensitive time, so before you do anything, remember that you don’t want to mess things up with your credit score or your lender. If you do make a wrong step, you may not be able to qualify for the home loan.
- Attend Open Houses. Learn the area and where you want to focus your search. Also, think of your “Must Haves” and communicate all of this to your Realtor. There is no reason to trip over yourself to view a new listing if it doesn’t meet your needs. That’s why you have to be certain that it has the vibe you want. Savvy home buyers know that the best way to find out more about the neighborhood is to meet the neighbors and then visit at various times of the day and night to see what it’s really like.
If you are thinking of entering the homebuyers market, give me a call and we can sit down and go over all of the options and map out the course that works best for your particular situation. There is usually more than one path to Homeownership!
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-Doug Robinson/Baxley-Penfield-Moudy Realtors
“Your Best Friend in Real Estate”
www.SalineCounty.RealEstate
Connect with me on my Homesnap account! The best way to search for a home! https://www.homesnap.com/Doug-Robinson
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