As 2021 begins, the U.S. housing market is a seller's market. What does that mean for buyers of all age groups as they scan the market for a new home? The National Association of Realtors reports that at present the available inventory of homes is 2.1 months nationally. In some areas, like Austin, Texas, the number is 0.7 months. Available homes are being gobbled up in short order as buyers significantly outnumber sellers and are willing to pay asking price.
Here are a few tips on how to be better positioned when entering the housing market pool.
1. Be prepared to make you best offer. With lower inventory buyers do not have the luxury of waiting out a seller by making a low-ball offer. There are several eager buyers swarming around each seller who are willing to pay make a better offer today while you sit on the sidelines.
2. Analysis Paralysis. Spending too much time crunching numbers and weighing the "+ and -" of a property may be the very thing to cause you to lose your ideal property. Other buyers are ready to strike while the iron is hot so do not analyze a deal too long.
3. Working with your agent. Your agent is on your side and is your advocate with the seller. Keep your agent abreast of your housing needs, your financial position, and the timetable for your move. Do not wade in the water if you do not plan to swim.
4. Get preapproval. This is "numero uno" on your must do list before you even see talk with an agent or see a house. Knowing how much you home you can afford cuts through tons of listings as you narrow your search for that ideal house.
5. Bidding war. Some markets may be so competitive that bidding wars erupt over a single property. As a buyer you may have to up your offer to win the property. Either you can or cannot. Be prepared to walk away and live to search another day.
6. Learn from your mistakes. Realize that not every offer you will make on a home is a winner. Sometimes, you will not be successful. Learn from what did not go right and be better prepared as you move forward.
Housing markets are cyclical. During one period there are more than enough houses to meet buyer's needs, while at other times houses are far and few between. Learning and understanding the housing market will enable you navigate better.
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