While competition is a fact of life, you may not have been expecting to find yourself in one…or two or three bids competing to purchase the home of your dreams.
But, that’s precisely the situation that some West Michigan home buyers currently face as they strive to complete a successful bidding process in a market which has significantly reduced inventory levels.
What’s going on you ask? Wasn’t it just a few short years ago that housing inventory levels were 13 and 14 months supply? Yes, that’s true. That was then…this is now.
Today, inventory levels are down below an average of 4.5 months for the past several months. This restriction in available homes for sale has created some interesting bidding wars for unsuspecting buyers. Read more about the current ‘SHIFT” in the market
What can you do if you find yourself competing for your next home purchase? Here are some tips:
1. Do your research.
Have your REALTOR prepare a housing market comparison report for your area and neighborhood PRIOR to tendering an offer.
2. Make sure your financing is set.
If you are paying CASH, have the ability to prove you have the money. If you will be taking out a mortgage, get a full pre-approval with a lender from the Lender stating that you are able to qualify for the mortgage required on the home you are bidding on.
3. Be prepared to move fast.
You may not be aware of how much interest a property is getting when you go through it. If you are really interested in a home, have your REALTOR put you on alert to notify you of any changes in the terms, price or condition of sale.
4. Know what your limits are.
Don’t allow the frenzy of the situation pull you off your market. Set your personal limits while you have a cool head and can make an intelligent decision about what works for you. Then stick with it. I have always told my clients that if a home is for you…it will be yours. And if it isn’t, there’s something better around the corner.
Over the years, I’ve had a lot of hugs for happy clients…many who missed out on their first deal and found a better one just around the corner!
Please contact us when you’re ready to move forward in the home search.
More reading on real estate curve ball tips:
- 5 key things that happened in real estate in 2012 (theinmanteam.wordpress.com)
- Five Things Consumers Should Expect From The Housing Market In 2013 (forbes.com)
- “Embrace” these 10 tips about mortgages and refinancing in 2013 (embracehomeloans.wordpress.com)