The Buying Trend That’s Stealing Your New Home Dreams – Home Buying Market Update
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Are you getting bummed trying to find a home? Are you a little enraged every time you look at Zillow and there are no new houses. Not one! How can that be?!
Right now across America we’re experiencing a “for sale” shortage and you know what? It’s even worse for first time home buyers. That’s because first time home buyers are in competition for those perfectly priced and perfectly sized first homes. Who could you possibly be competing with other than fellow young, first time buyers? Your grandparents! Come again? Yep, your grandparents are looking to downsize from their homes that host 25 people holiday dinners and have garages big enough to fit three cars. They feel it’s too much house to take care of so they’re looking to downsize to homes that you see as your perfect starter home. There’s a big reason this buying trend is effecting your ability to purchase a home.
Lately, we haven’t seen as much activity on the sales side of real estate as we have on the buy side. People are ready to take the plunge and become homeowners but the homeowners that would typically be moving up in home size are happy staying put! That goes back to the whole housing market bubble burst thing in the late 2000’s. Finding a home when there are few people willing to sell means every home that comes up has a lot of competition to start. Now, tack on that there are two home buyer groups competing for the same type of homes – that really ups the competition.
Unfortunately, the secondary group of buyers hoping to get these same gem-of-a-home you’re trying to buy have slightly bigger pockets. These buyers are more established and are likely selling a larger home so they have more financial flexibility. They are able to offer larger down payments or all cash offers, which are very appealing to sellers. They are often also willing to go with a “for info only” inspection, meaning they are okay not asking for inspection items to be repaired or replaced because they have the means to pay for them to be fixed after they move in. Yeah, money isn’t everything but it does sometimes help you win a little.
“They are more established and are likely selling a larger home so they have more financial flexibility.”
Now! All of that said, don’t feel like you will never find a house (insert crying face emoji). I have had several clients this buying season who have encountered this same issue but are getting ready to move into new homes next month. It can be done! My best suggestions for winning a home in this tight buyers market is:
Be prepared to go in with your highest and best offer