We’re starting to see the market go from a red hot seller’s market to a regular seller’s market.
But don’t let that fool you – if you’re a buyer, you still need to be cautious. Here are some ways to avoid getting burned as a buyer in a hot seller’s market:
Don’t Be Overly Picky
One of the biggest concerns buyers have in today’s market is the lack of inventory. Years ago, when a buyer would come to me with their budget and new home wish list, we would have to narrow down a list of 20-30 homes, and we could expect multiple new listings to pop up daily. In today’s market, we’re lucky to find two or three homes that kind of fit the criteria.
Since inventory is almost non-existent, you can’t be too picky. You need to understand that the all-white kitchen of your dreams might not happen right away. The goal should be to get into a home so you can stop wasting money in a rental and start growing your wealth through real estate.
Prepare To Compromise, But Look Out For Yourself
Many sellers are asking buyers to waive contingencies or to pay over the appraised value. Yes, we said the goal is to get into a home, but don’t get into a home that has risks.
Not getting a home inspection is risky and could set you up for incredibly costly repairs.
Go into your home purchase expecting not to have any repairs made, but if there is something seriously wrong with a home, it’s okay to walk away. You should also expect not to get your dream home this time around, but don’t pay tens of thousands of dollars more than you’re comfortable with. You still need to stick to a budget, so you aren’t stretched too thin at the end of the month.
Decide What Your Deal Breakers Are Ahead Of Time
Whether it’s your budget, location, or the number of bedrooms – think about what you absolutely will not compromise on. During the home search process, talk about that with your Realtor and make sure they understand that these are items you will not budge on. Stick to it, there’s not much that’s worse than buyer’s remorse.
Work With The Right Agent
In a seller’s market, working with an agent who is an expert in your area, knows the industry, has plenty of experience in every type of market, and treats you like their only client is more important than ever. You need an agent who will look out for your best interests and fight for you during the negotiation process. They will guide you but not push you or convince you to accept a deal that doesn’t work for you. They will understand how today’s market works and how to get you into a home that works. Your agent will help you avoid getting burned in today’s seller’s market.
If you’re looking for an agent who can do all of those things and more, LUXRE is here! Give us a call so we can discuss all of your concerns and your home buying goals and together we will make them happen.