Today’s competitive real estate markets claim for different home buying strategies, if one is to be successful in this industry. Even ten years ago, the real estate market was heated up with buyers. Crazy sellers at that time did anything by the help of which they could to sell their houses. The average selling terms of a county was $500,000, and buyers were waiting in a line offering on anything with a ceiling. Nowadays, the market demands different marketing skills, but the competition is still on.
Funding was a slam dunk shot, and appraisers never had a problem hitting the selling toll regardless of the price, they mean BUSINESS! They don’t care about anything else. They want to do transactions. However, it didn’t matter what buyers paid because the value of houses appreciated at around two percent a month. For example, the worth of a $400,000 purchase in 2004 rose to $500,000 in 2005. Price was the second priority to having a low monthly requital offered with creative financing. In short, you buy a home one year as well as refinance the next purchase or taking cash out to buy another home.
However, this happy party didn’t last for long. The attitude of home buyers towards home ownership had changed by 2009. In fact, they were forced to change their attitude and buying strategies as they had to adjust to a market which was dominated by and bank REOs.
Well, nowadays, there are many home buyers around. When one strolls through, he/she would see many posters that read “phoenix cash home buyers”, “we buy houses in Dallas Texas” and many more. There are many buyers like this. This might sound lame or weird, but this shows how competitive and concentrated the real estate market has become.
Now coming back to how the market works, buyers would nervously await a lender’s response to their offers. In agony, many buyers would have several passes outstanding at the same time on different dimensions waiting for an offer to be accepted. Back then, home buyers were very cautious about the price they claim. They used to hold their offer firmly, they didn’t hesitate to walk away if they got aware of the fact that there was a bargain awaiting. They would notice this during the inspection of the property. The buyers back then did not think much about the market or the future, they were always a man of their words.
It would be three years before the loaners finally had the personnel in place and developed a procedure for treating millions of foreclosure and short circuit sales. However, by that time, the prices of houses had fallen by fifty percent, and with that, the hungry sharks were into the water. Financing became a predicament from which, only the highly qualified ones came up. At that point, appraisals came below the purchase price, which showed that the market was declining. This phenomenon kept the new buyers away and was advantageous to the ones who had an abundance of cash.
However, now, the scenario has changed. In the last five years, the county’s average price has increased by eighty percent. The market has transformed from a cash-buyers market to a seller’s market. Financing has gained stability, and loans have become more achievable than it was three years before.
Here are some guide to home buying strategies in today’s competitive market that should be taken into consideration
Being prepared to move quickly
This market is only for those who don’t fear to take bold decisions. No room for snoozers in today’s market. Be in the hustle, try to be the first one to preview the new listings. One cannot afford to wait till the weekend open house, the houses will be sold by then, or other offers will be there. One sees something good, he/she should consult their agent immediately. No one is waiting to see their negotiation skills.
One would rarely find a home that satisfies you a hundred percent. One should be flexible enough to make concessions and price compromises. There would be many problems which you cannot be wary of. And later on, the things that are not satisfying can be changed.
Keeping it simple
Purchase contracts should not have many complications and should be straightforward. The contract should have normal time periods for inspection and loan approval. One does not need to get creative with the purchase. If one needs to sell a home before buying one, the sale should be done first. Try to keep things simple.
Being prepared to pay over the listed price
The value of the property might vary from time to time, one cannot complain about it. There are several logics the buyer has to pay over the listed price. One cannot argue in this regard. As a buyer, one should have enough budget to pay over the listed price if needed. If one is negotiating for this much, the transaction won’t be a healthy one, so the seller is most likely to cancel that.
Staying in the game
It is a very frustrating time for buyers as it is difficult to find a home according to their likings as well as according to the price level. It’s effortless to give up, and when one finds something good, many other offers pop up. However, to ensure a successful purchase, patience is key. One should keep looking and keep making offers. One cannot assure that the next year is going to be more comfortable, one needs to work hard to get something and be ready to tackle any problem.
One should be careful and use their brain in every step one takes. The buyer might not know that the purchase is the barter of many dreams, and many lives are going to live in it. Everybody means business, so they should, but at the end of the day, one should be clear to thyself and assures that they don’t trigger something worse for someone else.