UNDERSTANDING THE NUMBERS WHEN BUYING IN A LOW INVENTORY REAL ESTATE MARKET
As a homebuyer in today’s market, you’re no doubt at your wit’s end trying to find your dream home.
And when you find a home you love, you’re competing with all cash offers and bidding wars driving the sales price above what it’s listed for, and many times, even above what the home is actually worth!
While there is nothing you can do to create more homes for sale, you can certainly arm yourself by understanding the trends and patterns in the areas you’re trying to buy in.
While it’s not quite rocket science, there is definitely a significant competitive advantage to those that understand the trends of a real estate market.
A home buyer does not want to be caught off guard in a seller's market. It's one of the reasons that the most important thing a home buyer can do is trust his or her real estate agent to advise on market conditions. If it is a seller's market, it could very difficult, if not almost impossible, to buy the first home a buyer wants to buy.
Because home buyers generally have very little interest in the real estate market when they are not buying a home, they don't always know how the market moves from one season to another, much less from month to month. It is often uncomfortable for a buyer to be told the market is a seller's market when the buyer may believe otherwise -- especially a buyer who is trying to buy in a down real estate market.
Moving into your first home is exciting! But it also means you’ve got work to do.
Change the locks when you move into a new house — that way, you control who has access to your home. Image: Courtney Craig for HouseLogic
When I bought my first house, my timing couldn’t have been better: The house closing was two weeks before the lease was up on my apartment. That meant I could take my time packing and moving, and I could get to know the new place before moving in.
I recruited family and friends to help me move (in exchange for a beer-and-pizza picnic on the floor) and, as a bonus, I got to pick their brains about what first-time homeowners should know.
Their help was one of the best housewarming presents I
House hunting? Use this five-point sniff test to detect potential problems in prospective homes
In high school, I had an eccentric German class teacher who—among other quirks—didn’t allow us to use cough drops during class. If a student was hacking away, she’d offer a peppermint candy instead. She based this practice on a study she’d read about. In it, the scent of peppermint was piped into the air at a factory where it was found to markedly increase assembly line worker productivity. She may have been a little nutty, but she was definitely on to something: subsequent studies have shown that our sense of smell affects our behavior and decisions.
This isn’t news to real estate agents who’ve long known the power of baking cookies or brewing a pot