|By Shannon K. Bradshaw|
Let’s talk strategy in home buying. You do not have to be a prospective buyer or real estate professional to know the housing market is moving at the speed of light. No price point or market area is exempt from the craze. Multiple offers, cash buyers, quick closings and higher prices rule the 2022 housing market. The simple economics of supply and demand are the driving force of the “Wild West” theme in residential real estate.
No, I am not an economist. I have personally witnessed the fast pace, and helped buyers navigate this supply and demand imbalance over the last two years. We are experiencing a real estate game of musical chairs. There are fewer chairs and more and more buyers in the market. No one wants to be left standing when the music stops. The anxiety of selling without a place to land is at an all-time high. While I cannot resolve this apprehension to sell first, I can help buyers realize their strengths and leverage their resources to make strong and confident offers.
Individually we cannot change the current dynamic, but we can strategize to combat the challenges of limited inventory and a competitive market. The first and most crucial step is preparation. As a buyer and/or future seller, understanding your circumstances and how to position yourself in the market is key. Many sellers are working through word-of-mouth sales. This non-traditional method of selling a home has created more angst for buyers. These “unlisted properties” are most often the call I receive with little time to spare. My message to anyone who has even had a thought about buying a home: Make the financing phone call now!
No buyer wants to miss out on an opportunity. As a loan officer, I will never be the reason a client does not succeed at securing a contract. If there was ever a mantra for buyers right now, it is BE PREPARED! Do NOT wait until the house finds its way to you. Most buyers are looking to buy before selling, and many are held back by the equity in their current residence. Not willing to take the risk of listing first and being left without a chair, they have to resolve the best route to buy first. There is no one strategy for everyone. And having the time to review all options, resources available and prepare a Plan A, B or C will make the difference in securing a contract on a home.
My job description as a mortgage advisor is every changing. The role I have identified as of late is a coach and cheerleader. I want my clients to WIN! Athletes do not take one step on the playing field without practice or conditioning. Buyers must think like competitors. When the opportunity for the right home arises, immediate action is required. Buyers need a playbook. With lead time and an individual strategy prepared, a buyers can hit the ground running with confidence. As a mortgage coach, I will create the playbook and be ready for any call. The market will eventually settle to a sustainable pace. Until then, we must be prepared to make educated and confident decisions. So, let’s GO!
The opinions expressed within this article are the author’s and do not necessarily reflect the opinions or views of BankSouth Mortgage or its affiliates.
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