Spring season will be tough for home buyers
The spring season when it comes to the Atlanta area housing market is right around the corner and already heating up!
Spring is the start of the busiest home-selling and buying season in the region. Experts predict this spring will be a tough one for first-time homebuyers due to continuing low-inventory in the entry- to middle-level home sectors, leaving little room for price negotiations.
Q3 REPORT: low inventory drives price up in area housing market
This seller’s market has been developing for the past couple of years, and I think we’re now deep into it! Homes are selling much faster and at certain price points for a lot more than asking price. Homes listed under $250,000 usually have multiple offers and sell in the first couple days.
The current market condition in the region has started to resemble the pre-housing-crisis peaks, where multiple offers, waved contingencies, and above-asking offers were the norm. It’s important in a market that we are experiencing now, to have an experienced real estate agent in your corner to navigate through these hurdles. Many buyers are getting frustrated with losing out on bids with the current lack of inventory. Many times their frustration leads to over bidding on a home that may not be perfect for them. Contact me today to discuss the market and strategies for avoiding this mistake.
In addition to stiff competition, buyers are also faced with gradually climbing mortgage rates. But so far, those challenges haven’t cooled the desire of buyers to look for that perfect home.
The current seller’s market poses challenges to sellers as well because in most cases, sellers also need to find their next places to live. Contacting me today to discuss a strategy for listing and selling your home and buying a new home at the same time.
Tips for buyers:
Train your eyes: Buyers have to be able to tell whether they can make a certain home work for them or not when they see it. This is easier said than done. You’ve got to keep training your eyes, see a lot of things and see how you could make each potential one feel like a home.
Be prepared: In this competitive market, buyers are required to move quickly when they find their dream home. Buyers should get pre-approved for a mortgage while looking for homes. They should also put together a “team” with a real estate attorney and a home inspector in advance so they can quickly act on the transaction when the time comes.
Tips for sellers:
“Lean and sharp” pricing: Sellers may be tempted to price their homes higher in this seller’s market, but the strategy may backfire as the property may miss out the critical first 30-day selling period during which buyers flock to a new listing. Successful pricing can actually lead to higher sales price and avoid doing price reductions which always lead to lower selling price. Another great strategy is to price your home at or slightly below the market. This will get more potential buyers into your home and could start a bidding war which would raise the selling price.
Be creative: If homeowners are delaying selling because they haven’t decided where to move, they should be creative. Sometimes people should look just outside of a desired area. Often times a couple miles away can effect pricing by tens of thousands of dollars.