It’s a tense time for buyers if you’ve set your heart on entering the market or upgrading to your new home. The shortage of properties coming on to the market, coupled with pent-up buyer demand created by Covid restrictions, has seen prices continue to rise.
In America, we’ve seen reports of more than 50% of homes for sale being the subject of bidding wars for nine consecutive months.
This creates a lot of buyer tension, and it can be a tricky business not just to find the property of your dream but to negotiate a deal successfully.
Recent research from Redfin claims that a buyer’s chances of winning a property increases almost three times if they offer cash. They also put forward some strategies that could be risky.
According to this research, you’re 66% more likely to be successful if you waive the finance contingency as part of a deal. In other words, you do not make your ability to secure financing a condition of you buying the home. For many folks, that’s a high-risk play and not one I – or your mortgage broker – would recommend.
It is evident that buying a new home can be testing right now, but you will be successful with patience and perseverance. Here are some tips that will help you in your property search.
- Don’t panic. If you’re serious about your property quest, then stick with your plan. It’s not easy, but you will be successful eventually.
- Stay in touch. As your agent I can be your eyes and ears in our area, let you know what is new on the market and together we’ll achieve your purchase.
- Pre-arrange your finances. You should always be ready to move quickly when the seller has the momentum.
- Don’t try to time the market. Waiting for the market to go down could backfire. There is a wide range of research that shows this strategy doesn’t work. Despite the wisdom of doomsayers, the prices may continue to rise for some time.
- The market won’t stay hot forever. There’ll be a correction, and prices will level out. The unknown is what this level might be and when it will happen. Could it be this week’s prices or those achieved in three months? Second-guessing the market will drive you crazy. Stay with your plan.
- Continue to research and monitor. Remember, America’s property market comprises thousands of micro-markets. So rather than worry about media headlines, keep looking at the results being achieved in areas where you’d like to buy. Be mindful, too, of the style of property and how it is performing price-wise.
If I can help you secure your dream home or sell your existing property, please do not hesitate to contact me. We can discuss buyer preferences, price trends in our neighborhood and the best ways to maximize the value of your property.