Buying a home has never been more challenging than it is today. With such little inventory and high demand, homes are receiving multiple offers, getting over asking price and are under contract within hours of listing on the MLS. Prices continue to soar and are expected to continue to increase in 2022, although not at the same pace that they have been. The current median price in Mesa for February is $428,000. In February 2021, it was $330,000. That is an increase of 29.7 percent. Here are seven tips to help you navigate this market. These are just some of the ways to be competitive. Please feel free to reach out to me if you would like additional tips and tricks on how to get your offer accepted in today’s market.
1. HAVE A PLAN AND BE READY
Sit down with your agent before starting your home buying search and come up with a plan. When it’s time to make an offer, you need to be decisive and know how you want to structure it ahead of time. Be ready to jump and write an offer as soon as you see a home you like.
2. HAVE REALISTIC EXPECTATIONS
You know what you want in a home, but with such little inventory, you may not be able to find it or afford it. Have realistic expectations of what is out there and what you can afford to buy. Waiting for that perfect home could take months, and in turn, costs you hundreds or thousands more as prices and interest rates increase.
3. LOOK FOR HOMES UNDER YOUR BUDGET
You probably shouldn’t look for homes at the top of your budget in today’s market, where bidding wars are pushing prices way above the list price. If you go in at the top of your budget, you have no room to bid higher and will be outbid by other buyers.
4. MAKE YOUR BEST OFFER FIRST
With multiple offers, a seller doesn’t need to counter and is more likely to take the best offer from the pool of offers he has in front of him. Don’t expect to get a second chance. Go in with your highest and best offer right off the bat.
5. IT’S NOT JUST THE HIGHEST PRICE
While every seller wants to sell for the highest price, they are also looking for the best terms. Being able to waive some of the contingencies such as the appraisal contingency, buying As-Is, or reducing the number of days for the inspection are some ways to make your offer stand out. Your Realtor can find out what is important to the seller, such as a post possession for a few days, a rent back for a week or two to make the move easier for the seller, or a quicker or longer close of escrow. Offering something that the seller is looking for or something that can make selling easier can give you the edge over other offers.
6. DON’T WAIT
I’m often asked by buyers if they should wait for prices to come down. The outlook for March is for prices to keep rising and demand to weaken slightly. It is not certain whether demand will weaken enough to cause supply to rise or if we will continue to struggle with desperately low numbers of active listings. Only a very steep rise in supply will work if we are to see prices stabilize, never mind start coming back down. With home prices continuing to go up and interest rates expected to increase, there is no better time to buy than right now.
7. GET THE BEST REAL ESTATE AGENT POSSIBLE
An excellent real estate agent is every buyer’s secret weapon. They’re not only great negotiators, but they have a solid understanding of the neighborhood you’re interested in and can advise you on what similar properties are selling for in this competitive market. Experienced real estate agents also have terrific connections in the community, which will benefit you.
Purchasing a home in a seller’s market can be frustrating, but these tips may make the process easier. If you would like more information on how to get your offer accepted or have any questions, please don’t hesitate to contact me.
Lorraine is a Multi-Million-Dollar producing agent, has been a full-time Realtor for over 13 years, is an Associate Broker of KOR Properties, a Certified Negotiation Specialist, and is on the Professional Standards Board. You can reach Lorraine at (602) 571-6799.