.........because there is still a way to purchase a home in a competitive market. My broker was kind enough to give me some tips to talk to my buyers about and I thought I would share it with you.
"Be Prepared
Bidding isn’t just about who has the most money to throw around. Just as with any kind of scrimmage, if you’ve done your training pre-battle, you’ll fare better than those untrained. Trying to buy a home in this tight of a market can be war. Here arr ways to fortify yourself.
1.
Local Knowledge: Understanding the local market is the first step in predicting what the competition will be on any given property.
Your Realtor® can give you the best, most current, most exhaustive market data and help you make sense of it.
2. Understanding Median Prices: Though the median list and sold prices are aggregate, not individual numbers, you can logically assume that if a home is for sale within the price range the majority of homes in that area are sold for, the competition for that home will be stiff.
3. Understanding Days on the Market: Homes that have lingered on the market in areas with low inventory likely have issues. This does not mean the home won’t work for you. Maybe you are interested in an up-and-coming neighborhood that’s still too rough around the edges for most buyers. Perhaps you are an expert at renovation. A high DOM number isn’t a deal killer, but it is a red flag. And know also that competition for fresh listings is much higher than for stale ones.
4.
Understanding the Seller’s Strategy: Using the comparative sales
your Realtor® has pulled for you, you can see where, on a scale of values, the home you’re interested in, lies. If it’s on the low end of the scale, yet inventory is down, sales are up, and prices are up in this neighborhood, you have identified the seller’s likely marketing strategy. The home’s price: artificially low. Expect a bidding war to ensue." (Zip Realty)
There is more tips to buy a home at this link:
Til next time,
JC
