Buying In A Seller’s Market
What we have seen in terms of a seller’s market since the pandemic is for the history books. In fact, this may be the strongest seller’s market we have ever seen. According to data from the “Good Time To Sell” Index, there has never been a higher sentiment when it comes to sellers. However, when sellers are winning, buyers are losing. It is very hard to be a buyer right now in today’s real estate market. The “Good Time To Buy” Index has buyer sentiment at record lows. Here is a guide to buying in a seller’s market.
Building A Team
As many buyers in this market have realized, it is hard to buy a house. In fact, many buyers have actually been discouraged from the market overall. The competitiveness in today’s seller’s market is an obstacle for everyone in the housing search. This is where hiring a real estate professional is beneficial. A real estate agent is an expert in everything that you will need to do to win your property battle. In fact, 89% of buyers used an agent in 2021, a record high representation in the market. This is because buyers see the opportunity to take their homeownership leap, and need someone who specializes in making this happen. In such a competitive market, it is important to have this professional in your corner.
Making A Plan
Having a plan when buying a home opens up the opportunity to actually achieve homeownership. In general, many buyers have a strategic plan or budget in place. However, due to rising mortgage rates and record high home prices, it is important to have this plan in place. A tight budget and willingness to cut out unnecessary spending to achieve homeownership is important. A way to help avoid inflation is to lock yourself in on a monthly mortgage payment. In fact, real estate is a hedge to inflation. Because of real estate being an inflation hedge, it is important to take the needed steps today to avoid long-term price increases.
So, being able to plan for swings in prices and increases in mortgage rates is important. This is where having a qualified lender is important as well. A lender will let you know what you will end up paying per month, how much you can afford, and what your interest rate will be. Set aside a budget, make sure your down payment is easily accessible.
What You Should Be Buying In A Seller’s Market
As a buyer in a competitive market, it is important to remember what you have to have versus what you want to have. Throughout the pandemic, what buyers are looking for changed dramatically. This has altered the current real estate landscape for years to come. It is important to make a list of what you want, need, and where you want to be. This could and should also go into your planning step. A lot of buyers get caught up in what a house doesn’t have versus what it does have. In today’s market, you cannot be choosey. Decisions need to be made to help you achieve your goal.