The housing market is crazy and out of balance right now.
It’s 2018 and interest rates are still low, home values are up, but something is lacking. It’s SELLERS! Inventory is down from this time last year, and we were thin on inventory at that time. What does this all mean? It means that we are seeing homes sell the first day they are on the market, with multiple offers, and with many offers over asking price. It is tough sledding for buyers right now. This makes for a hard time for people moving with their job to Kamloops and are forced to maybe overpay or cannot find a great home. So even with the new rules and regulations in the real estate market you can still get ahead of the game by following these tips....
There are always some steps you can take to get at the front of the queue, get a great Realtor working for you, get yourself put on the MLS PCS (Private Client Services) system to get the new listings as soon as they come available.
Let’s first of all define what it means to be a buyer’s market and a seller’s market:
Right now we are in a very STRONG seller’s market. There is much more demand than supply, meaning sellers are able to sell quickly and for top dollar. Buyer’s on the other hand, are struggling to find homes. As soon as they find something they like, it’s gone.
But that doesn’t mean buyers can’t be successful in this market. Buyers need to be prepared and ready to act quickly. Here are some tips to help buyer’s win in this exceptionally competitive market:
1. Have pre-approval from a lender. Having a strong pre-approval letter from a lender will help your offer get accepted. In situations where there are multiple offers, strong financing matters. Cash offers are the best, but those with pre-approval from the get go move up in line ahead of offers that don’t have pre-approval from a lender.
2. Be prepared to write an offer the first day a home is on the market. If you see the house you want, you can’t hesitate. Hesitating means someone else is going to buy that home before you. It’s stressful to feel so rushed, but with the market the way it is, if you find something you like, you need to be prepared to act.
3. Hire a top notch Realtor to help you navigate the challenging market. Realtors will often find out about listings hitting the market ahead of time (especially Realtors from large companies). A Realtor can notify you instantly of new listings that hit the market – they actually should have you set up with automatic listing notifications though the MLS. That way when a new listing hits the market that fits your description, you get it straight to your inbox. A good Realtor can be invaluable in this challenging market. They can also handle negotiations in a multiple offer situation, helping you win out over other buyers. Get yourself a Realtor and start winning.
4. Go see a home the first day it’s available for showings. Often this is at the open house. If possible have your Realtor attend with you or have him/her ready to submit an offer for you that same day.
5. Write strong offers. There are several ways to do this. In this market, if you really want a home, don’t be afraid to write an offer for asking price or even higher. There are also other things you can do to strengthen an offer. Having fewer contingencies in your offer can help. Either eliminate the sale of property contingency if possible or don’t have an inspection contingency. Doing these things move your offer to the top of the stack.
While the current market is certainly challenging, it’s not impossible. Get yourself a great Realtor, be prepared with a pre-approval letter, and be ready to write a strong offer the day your dream home hits the market. You will find yourself winning in this challenging market and moving into your dream home while others are still shopping.