Across the United States, a lack of housing inventory has created a huge seller’s market — that is, prices are on the rise and buyers may face bidding wars. If you are a buyer, you may be wondering how you can navigate through 2020’s abnormally hot and unprecedented housing market to fulfill your housing goals. Here are some tips for home buyers to help you get started.
Research your Dream Home & the Market
In 2020, many people have a renewed motivation to move, seeking extra space for a home office or virtual classroom, backyard, or home gym, due to extended shelter in place restrictions across the United States. If you are a buyer, you need to research your dream home. Know exactly what you want, as you are likely to face competition. Whatever your dreams may be, being proactive is about knowing what you want is important so you can grab it as soon as it appears.
Get Ready for Virtual Showings
Because of lower inventory across the nation, homes are moving quickly. Seeing a home virtually is your ticket to buying it. Virtual showings are one of the top trends during Coronavirus. Be open to falling in love with a home on video. You can see the home in-person later on to make your crucial final decision. Remote showings might be one-on-one or with other buyers, like a typical open house. When you do see a home in-person expect social distancing rules, masks, and hand sanitizer as the norm.
Prepare for Bidding Wars
Bidding wars are a reality of buying a house in 2020. In HomeLight’s Q3 survey, 87% of real estate agents said that inventory is lower than they expected it to be this quarter, compared to 47% who said the same in Q3 of 2019. Multiple offer situations are almost a guarantee at this point — more agents than ever (88%) say that bidding wars are on the rise or at their
peak. Several respondents in the survey described the situation as “insanely competitive.”
Expect Higher Prices
If you have your sights set on buying now, you might be paying more than the typical market value. The combination of a low supply of houses with robust buyer demand created rising property values across the nation. The percent of real estate agents
seeing home prices escalate in their area skyrocketed from 6% at the start of Q2, to a firm 81% majority in Q3, according to the HomeLight report. Top agents across the country are advising homebuyers to offer above asking price and make no requests for concessions or closing costs in this market environment. Many are going so far as to write letters, bid sight-unseen, and waive contingencies.
The best advice for buyers now is to stay positive and work with a real estate professional who has experience in the market that you want to buy in. They will help you navigate through buying a home during these unprecedented times.
