Preparing to buy?

Most U.S. markets are seeing increases in sales prices. In some cases, homes will sell in as little as a few hours. That’s not the case everywhere. though, as homes in some areas are going for lower than asking price.

For the most part, were seeing an increase in prices in suburban areas and a drop in cities. Because of COVID, people value their space and with an increase in remote jobs, many people don’t need to go into the office more than once or twice a week. People don’t know what the future holds so they want to be comfortably prepared.

In some areas, homes are selling way over asking price, an average of 50 percent more than average. This is because there are more buyers than homes for sale. In some areas, there are less than 100 homes for sale a month. Buyers desperate for a home are willing to pay $100,000 or more than asking price.

In a normal market, most homes sell for under asking price. In this market, places that are unappealing are still selling for less. These places include major cities, vacation spots, outdated area, and crowded areas. Though these are the most common reasons prices are low, there are just unappealing areas in the country that haven’t had much of an impact from COVID.

Bidding wars are common due to the increase in buyers. It is easy to get intimidated because many people need to buy a home at that time. It is important not to get too carried away, so you don’t end up spending more than you initially planned or end up with hidden problems.

There are a few things to consider before buying a home in today’s market.

How much can you afford?

You must determine your budget. Keeping in mind that you may have to offer over asking price, determine the very most you’re willing spend, and be prepared to spend that amount if you really love a certain home. Getting pre-approved can speed the process along. Search for homes that are under your budget because more than likely you will have to put in a higher offer.

Skipping contingencies could strengthen an offer. Common contingencies include a home inspection, home appraisal, and financing contingencies. Although it is more appealing to sellers, it could backfire on the buyer. Skipping these should only be done if you are confident the home is in good condition.

Cash offers may be considered over a higher mortgage offer. It is less for the seller to worry about and saves time as well. Making a cash offer is the most effective strategy for buyers in this market.

This market won’t last for too long and will eventually go back to normal. If you are indeed in the market for a home, it is best to be prepared to spend more than what may feel comfortable. Do your research and rely on a trusted real estate professional.

To contact me, call 708-583-8300, e-mail gz@zerillorealty.com or visit www.zerillorealty.com.