Changes For Home Buyers This Spring
In 2019, the housing market has slowed down for the first time in many years. This is a big change from the housing market typically being filled with overpriced houses, bidding wars and tight competition.
Currently there are plenty of houses reaching the market and home sales are down. Sellers are being forced to lower prices drastically due to their listings sitting on the market. Sellers are realizing in order to make any money they need to cut their prices rather then let their house sit. Although the inventory is rising, prices are still fairly low. Prices have been slowly creeping their way up, which may cause some challenge for home buyers.
Ways to Navigate the New Market:
Research the Area:
When a home that you are interested in sits on the market for a while it can be a good time to decide whether or not it will be the right fit for you. Something to take into consideration is to see if the neighborhood will be a good fit for you. Many people claim to have “neighborhood regret” after purchasing their new home. It is important to research your potential new neighborhood so this cannot happen. If you have kids, it is equally important to research the schools in the area as well. Many real estate listing websites have maps that show accurate photos but it is also important to drive to the location to have a better feel for it.
Look at all Options:
Although you may have a specific reason for picking the town you are looking to buy, it is important to keep your options open. It would be helpful to look at surrounding towns or cities to see if it may be worth investing elsewhere.
Consider all Types of Homes:
The construction industry is still recovering from the Great Recession, leaving new construction housing inventory low. It is important to have an open mind to purchase any type of home. Some older homes can easily be fixed up or you could look into a fixer upper that can help save money and assure you can have all features that you wanted. There is a much larger home inventory of older homes to be fixed up.
Be Open to Negotiation-Not Just on Price:
Yes, we all hope to negotiate a better price than the one listed, but not all sellers are willing to budge. Sometimes it is easier for the seller to be willing to negotiate on repairs or costs. If there are repairs that need to be done to the house, most times you can have the seller agree to fix them, rather then drop the listing price. Also, if you go through the home inspection step and find there are things that need to pass inspection, some sellers may be happy to help with a Sellers Assist. A Sellers Assist is an option your realtor may suggest to have the seller give you a certain amount towards having repairs fixed. Another thing some buyers are able to negotiate with their seller is to have them pay for closing costs.