A Traditional Market.
What does that mean?
First, let's recap the last update to understand our current market. Experienced, local real estate agents understand that we are shifting toward a more traditional market. We are seeing a slow down of competition on BOTH sides of the for sale sign: lack of inventory, higher (but not high) interest rates, and the all important key factor that not all homes compete the same.
These market traits are creating a new real estate personality not everyone is familiar with. Instead of season-driven trends, market factors (that seem to fluctuate daily) are pushing and pulling on the speed and demand of our limited inventory. The market is driving the market.
What does that mean if you're considering selling your home?
It first means understanding the who, what and why of the active buyers. Our team reviewed the latest feedback received from showings on our current listings and our own active buyers and, while not all homes compete the same, there is one glaringly obvious factor that lingers across the remarks and price points: CONDITION.
"Needs too much work"
"Outdated"
"Good location but overpriced for the condition"
First impressions matter and they can overshadow the entire experience for a home seeker during a showing or even stop them from visiting at all.
Why Has This Changed when Inventory is Still Limited?
With a limited inventory market, many sellers believe they can simply throw their house on the market in an as-is condition because buyers have little to no options. In the recent past, this may have been true but in this emerging traditional market, buyers have less competition and pressure. Sellers must consider their home's immediate impression and their competition.
And that competition has slowly expanded to include NEW HOMES.
This is not a set it and forget it market anymore.
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How do you identify if you're competing against direct comps in the neighborhood or new homes nearby?
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Where do you even start to prepare your home for sale?
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What is worth updating and what can be left undone?
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 and get your most pressing questions answered before you lose precious time sitting on the market.
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.
