What is Really Happening in the Southwest Michigan Real Estate Market?
If you've heard it once, you've heard it a thousand times: lack of inventory creating little to no competition in selling a home. It drives the price of homes up and makes buying a home harder. BUT, if you've spoken with a local real estate expert lately, the tune is changing a bit but no one seems to know what song it is.
So, what is really happening in our local market?
It's shifting but it's not "down" and not by a long shot. It is becoming more of what experienced agents know as a TRADITIONAL MARKET. We are starting to see a lack of competition on both sides of the for sale sign; a lack of inventory for sellers means higher prices but a lack of buyers due to higher (but not high) interest rates means home seekers have more time to make decisions.
Not All Homes Compete the Same
Value is the Key
Many factors are allowing for this Traditional Market to creep back in. The most important factor: not all homes compete the same. Price, size, condition, and location create a desirable or less desirable option for the buyers that now have a little bit more time and wiggle room to simply be more picky. Today's buyers consider the time and money that go into a updating a house to make it a home and in a Traditional Market, VALUE is the key to attracting the right buyer.
Are you thinking of buying or selling? The market is moving but having the right approach with the right team behind you is key to your real estate success. Put Team Clancy's years of experience to work for you to make it happen.
All information deemed materially reliable but not guaranteed. Provided by Greater Kalamazoo Association of Realtors.
Buying a Home in a Traditional Market
The lack of competition on both sides of the for sale sign offers a slight relief for buyers, creating a little more wiggle room to shop. Although finding a home that fits your needs and budget can still be a challenge (some price points and ready-to-move-into homes are moving quickly) higher interest rates are keeping some home buyers browsing online making the competition a little lighter. With the right real estate team behind you, you can find value in our current homes for sale.
Buying a home in a seller's market can be a frustrating process if you aren't prepared. The market may be shifting to a more traditional style but you still have to be prepared. Here are some tips to get you ready to buy in today's fast-moving seller's market:
Price: Be Ready to Make a Strong Offer
Chances are, you will already have a price range in mind when you start your home/property search. In a normal market, you leave room for negotiation, your initial offer is often at the bottom of that range. However, in a seller's market, one can’t expect to go about it that way. Since you’re going to have a lot of competition, the price you initially offer may be your only shot at that property. In a seller's market, we tell our clients to be prepared NOT to get a 2nd opportunity to make an offer or negotiate. Make certain your offer is a strong contender, free of unnecessary contingencies as well as risk & uncertainties that will make the sellers uncomfortable. MAKE YOUR OFFER EASY TO SAY YES TO!
Pre-Approval
If you don't want to miss out on a property you love, make sure you are pre-approved for a loan BEFORE beginning your home search. Seller's will take you, and your offer, more seriously if you are pre-approved.
Contingencies
Most offers have 3 contingencies: loan approval, appraisal acceptance and satisfactory inspection results. These contingencies, if not fulfilled, allow a buyer to terminate a contract to purchase and retain all of their deposit money. There’s nothing worse for a seller than having their property tied up for a long period only to have things fall apart. Not having additional or high risk contingencies, minimizes the seller’s exposure and makes your offer look all that much better.
Also, ensure that your offer is NOT contingent on selling your current home. With buyer competition strong and multiple offer situations prevalent, sellers will likely choose to pass on your offer (even if it is higher than the others).
Bridge Loans Available
A bridge loan can help ease the transition from one home to another.
While today's market favors sellers, NOW is still a great time to buy! Real Estate is still a good investment and fixes your shelter costs while rental rates go up.
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