Buying A Home In A Seller’s Market – Here’s What You Need To Know

Being a buyer in a seller’s market is challenging under normal circumstances, and in 2021 it has only gotten more complicated. You are competing with other buyers for the few houses on the market, and data shows this is a nationwide trend.

Whether you want to move to the city or a more rural setting, you need to know how to navigate the current real estate market.

Be Prepared to Make Concessions

In 2021, more people are looking to buy than selling their homes. When you find your dream home, you won’t be the only person bidding on it. You may have to increase your offer several times before it’s attractive enough to get the seller’s attention. Not everyone can afford to go above their preferred housing budget, and this is when you need to start making a few concessions.

When you’re house hunting in a seller’s market, there’s a good chance you won’t get everything on your wish list. If you’ve always wanted a dedicated space for your AV receiver and other equipment, you may have to give up your dream of creating a home entertainment room.

Other concessions can include not getting a backyard pool or your first-choice neighborhood.

Housing Prices Are Going Up

Buyers don’t want to wait too long in 2021. The National Association of Realtors is predicting average home prices to jump by an estimated 3.1% by early summer. Part of the increase is seasonal, June and July are the busiest months, and prices are excepted to rise.

Home prices are higher in the spring and early summer, but there is a bright side. You typically see more homes entering the market during this time. You may pay a little more, but you will have more listings to choose from.

Colder weather does lower home-buying costs, but you have fewer options making it harder to check off everything on your must-have list.

Become Familiar with Digital Tools

With the COVID-19 vaccine roll-out underway, sellers and realtors may start advertising open houses again. In the meantime, if you want to tour the home you need to know how to use a few digital tools.

Home tours are virtual, and closings are completed electronically. Zoom is the digital tool that allows sellers, buyers, and their agents to hold socially distanced meetings.

Real estate professionals don’t see the use of these tools going away anytime soon, even after social distancing restrictions are lifted. All parties involved in the housing market are realizing how cost-effective and efficient these digital tools are.

What Has Stayed the Same

Not all aspects of buying a home have changed regardless of who the market favors. You still want to find a lender, before starting your search. You want to have your financing ready before shopping. Remember, it’s a seller’s market and there’s a lot of competition. You don’t want to lose your dream home just because your financing fell through.

Keep your budget in mind and be prepared to give up one or two wish items and buying a home in 2021 may not be such a challenge.

By Karl Kennedy

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