Real Estate Tips

Why is it hard to buy a home right now?

Why is it hard to buy a home right now?

Why is it hard to buy a home right now?

Many people looking to buy a home right now are finding it much more difficult than it was a few years ago. A home is the largest and one of the most important investments that most people will make. Those looking to find their dream home in the current market are experiencing challenges with a lot of competition. Many are having to settle for less than they expected at a higher price. To help better understand the current market, here’s why it’s hard to be a home buyer:

 

Demand is high

In simple terms, it’s an issue of supply and demand. Demand for homes in the Southwest and throughout many parts of the U.S is high and inventory of homes for sale is historically low. As a result, it’s an ideal sellers’ market and a big challenge for those looking to buy a home. Buyers are competing for homes and submitting bids well over asking prices, which continues to drive home prices up. Another reason for increasing demand is investors are buying properties to rent, which is eating up potential inventory for sale. Investors are willing to purchase homes that may need work and pay to make quick fixes to satisfy potential tenants. This combination leaves those looking for their dream home at a disadvantage. 

 

Sellers are expecting more sacrifices 

Those selling their homes right now realize the advantage they have in the current market. A buyer can expect to make unwanted sacrifices if they want to get the house. Buyers are stuck making tough decisions, agreeing to terms with quick closes and waiving appraisal. Sellers are in a strong position, able to ask buyers to cover costs such as homeowners’ association transfer fees, warranties, and home repairs. More and more sellers are selling their homes “as is” and buyers are left to decide if they are willing to take on the burden of fixing the issues if that’s what it will take to get the house. If a buyer is not willing to settle on terms of the seller, they will move on to the next highest bidder.

 

Tips for navigating a sellers market

The best way to navigate the current market is to come in prepared. The first step is to find a reputable and trustworthy real estate agent. They will help guide you through the process and it is important that you have someone who will advocate for you. Next, have a set budget and know exactly what you can afford. Along with this, know what you want out of your home and exactly what you are looking for. Make sure you know what must-haves are and what you can live without. This will help move through the decision making and offer process more quickly.  Lastly, figure out what work you are willing to pay for or do on your own and if you are willing to waive appraisal

 

If you are looking to purchase a home, the Landmark Title team is here to help with any questions you may have about the title and escrow process. Contact us to find out how we can help you.

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