Our recent blogs have often touched on what a great market it is at the moment, for both buyers and sellers.
In fact the only really significant chink in the armor at present is the continuance of low supply of available homes.
While it creates fabulous, low-competition/price-resilience opportunities for sellers, low inventory is clearly not such good news for buyers, who very simply have less choice.
Some buyers may be tempted to sit on the fence until more homes become available. There is, however, no way of knowing when this will happen and, perhaps of even more importance, there is always the risk that the current ultra-low mortgage interest rate environment will suddenly change and what is arguably the opportunity of a lifetime for buyers will have evaporated.
We therefore thought it might be a good idea to suggest some practical ideas and mindsets that can help to enable buyers to make the most of low inventory:
Be flexible - Although you may have set your heart on a certain location and/or style of home, this is clearly going to limit your choices, quite drastically in some cases. Here's where a willingness to research alternative areas and home types can pay dividends, because there are still so many amazing properties for sale right now that could be a great match for you, if you're prepared to explore all possibilities.
Be willing to view several homes - Following on from the above point, although we would normally suggest a tight focus on the sort of property you're looking for, right now it might be necessary to view a wider range of home types. This increases the likelihood that you'll come across a home that you might not have considered ideal, until you inspect it for yourself. Seeing is believing, after all.
Be ready to act fast - It's becoming increasingly common for homes to sell very quickly after they are listed. Indeed the average number of days a home is on sale for in the Albuquerque area has been falling a lot in recent months (currently just 49 days). It's therefore imperative that you're able to make an offer for the right home, as soon as possible after viewing it. You need to ensure that you are pre-approved for a home loan in advance of your search, because this will enable the seller to take you very seriously. Given that multiple offers are quite common now, you don't want to be at a disadvantage because other competing buyers are all set up and ready to go and you're not...
Buy first if you can - If you already own a home, there's usually a need to sell that property to facilitate your purchase of the next one. Ideally you will already have your own sale in the bag when you make an offer for your next home. If this just isn't possible, then a number of options are available to you, including bridging finance for a down payment, if cash isn't available, although this will typically require that you have an income stream that will support having multiple simultaneous home loans. You could also consider renting out your existing home, which will help you to keep your monthly outgoings at a sustainable level. As ever in these situations, it is a great idea to seek out professional financial assistance.
Team up with a great buyer's agent - On balance, we think we've left the best advice until last. A top performing buyer's agent is an expert at matchmaking homes to new owners and, with fewer choices around at the moment, that's an even more important skill to have. The best buyer's agents will also have superb connections with listing agents and will often know about a home's availability before there has been any marketing whatsoever, giving you an invaluable head start over other buyers. And when it comes to negotiating the best price in a market where demand is outstripping supply, your agent will be able to assist you in getting the best possible deal.
Remember that even though there are less homes around than the market needs, it's still perfectly possible to instantly find the ideal choice for you. Contact us today and we'll ensure that you get the very best shot at achieving your goals in the shortest possible timeframe.