Low inventory, high buyer demand — be prepared
2020 has had its fair share of ups and downs, but the effects on the property market remain strong.
Because of the historically low interest rates that drive buyer activity and the fact that few homes are available for sale, sellers see multiple offers for their homes, leading to bidding wars. This low inventory makes it difficult for buyers to find homes to buy. Buyers compete against several other buyers to compete for a home.
(Courtesy REMAX Direct)
If you are in the market to buy a home to take advantage of these low prices, here are some tips to help you prepare your listing.
- Multiple offers are becoming more common, so you need to be ready to make your move. It is a good idea to get pre-approved for a home loan before looking for a home. This way you can quickly and efficiently write an offer when you have found the right home. With pre-approval, the seller knows you mean business. Contacting your mortgage lender first is the best step in preparing for this.
- In a highly competitive market, it’s common for sellers to pick a date and time to review all of the listings at once. If so, you may not have a chance to negotiate back and forth with the sellers. When you present your strongest offer, you have a higher chance of tilting the scale in your direction when the seller has to select an offer.
- Overall, houses sell like hot cakes, which leaves no time to waste. You may not have time to “sleep” on it or shop on it when you find a home that you love. Someone else probably loves it too. If you wait too long, you may not even get a chance to get your quote.
The real estate market is extremely strong right now and buyers are grabbing homes faster than they hit the market. Don’t get left in the dust when looking to buy your dream home. Be ready and be prepared.
Lori Patenaude is a broker at REMAX Direct in Ramona. Contact them at [email protected]