Man, has it been a year already! Who knew that the year I finally decided to follow my passion of becoming a Realtor® we would end up having a pandemic…. as well as record high market prices and super low interest rates, all at the same time? This year has certainly been an interesting time to learn the lessons of real estate buying and selling.
I’ve heard some people saying that we are in both a “buyers’ market” and a “sellers’ market”, but the reality is that’s impossible. According to the National Association of Realtors® (NAR), “The increased demand exceeds the existing supply, which means that more buyers are seeking to purchase properties than there are available homes on the market. As a result of the bidding wars, sellers are able to secure a sale price that is higher or similar to the listing price. These kind of conditions are typically called a “Sellers’ market”. As you’ve heard me mention in my monthly market updates for the past few months, that is exactly where we are.
Although interest rates are super low, offering more buying power to those purchasing a home, it doesn’t change the state of the market. Sellers are getting offers above asking price and bidding wars are not uncommon. As always, this makes getting pre-qualified and having all your ducks in a row prior to looking at homes even more important.
This leads me to my first point of concern: Lower interest rates often put buyers in a position to purchase more house than they actually need, whether in size or money. Economic changes and uncertainties make this a risky option. Always speak to your financial advisor prior to looking for a home, especially in a sellers’ market. Understand how much you want to spend in a month, and what your ideal budget is. Because the inventory moves quickly, you will need to be pre-qualified for a price range and know what you want to spend so that you can make an offer immediately once you fall in love with a house. Moving fast is imperative here.
In this market, you probably won’t find “a deal.” You may find a seller that isn’t concerned about their bottom dollar and just needs to move their home quickly, but right now the majority of sellers know what they have and that they can ask premium prices (and get them). If you find a home you love, don’t be afraid to make an aggressive offer and move quickly.
Choosing your Realtor® is such a huge decision – they are going to handle the largest purchase you will make in your lifetime and need to have the passion and knowledge to navigate you through the process and teach you along the way.
Always interview your potential Realtor® to make sure that you are willing to spend months with them! You will be working closely with them – phone calls, appointments, email and text communication lines need to be open and they need to be available to you when you have questions. Make sure you get a Realtor® who is going to answer your phone calls, keep you calm, and make you laugh – it’ll be needed! For more information on what it’s like to work with me, visit my about page and read several reviews from my past clients!
If you are thinking about buying and have no idea where to start, check out my purchasing page, where I explain the process and offer next steps. If you are ready to get your home in the market, check out my selling page, where I explain the must-haves of home selling. If you are ready to take the next step and talk with a lender, visit my resources page!