You’ve heard it a hundred times. We are in a tight housing market, a.k.a, a seller’s market.
According to the real estate dictionary, a seller’s market exists anytime there are fewer than six months of available inventory in a market.
A market can be defined by a geographical area, i.e., Charlotte, Fort Mill, or Waxhaw, and sub-markets may include specific neighborhoods, styles of home, or price points.
A tight housing market occurs when there are more potential buyers than the number of homes available. This is especially true in price ranges that typically attract first time home buyers and value conscious buyers.
Tips for Buying a Home in a Tight Housing Market
- Be Prepared. Have a loan pre-approval before going to see homes, know exactly what your budget is, and be prepared to write an offer.
- Know Your Strong Points. The deciding factor in getting your offer accepted isn’t always just price. Other terms such as financing type, ability to close quickly, and whether or not you need assistance from the seller to help cover closing costs are also important.
- Analyze the Market. Study the market and identify homes that may seem overpriced, perhaps aren’t quite as updated as the others, or that have been on the market for an extended period of time. You’ll have a better chance of securing the home if you aren’t competing with other buyers.
- Don’t Be So Picky. Unless you are building a custom home and have input throughout the design process, you are not likely to find a home with every feature you are looking for. If a home matches your primary needs and has 50% or more of your wants you should consider making an offer. You can always add the “wants” later.
- Go All In. I get it. You want to buy low and sell high. But remember your primary goal, and that is to purchase a home that satisfies the needs and desires of you and your family. You can make low ball offers all day long, but if your offer is not accepted, you are still without a home.
At the end of the day, there are more than enough houses to go around. Just because the market appears to tilt in the seller’s favor doesn’t always mean that’s the case when you come prepared with a solid game plan.
Happy house hunting!