How to Be a Successful Buyer in This Market
By now you have heard that the market has shifted significantly since this time last year. Interest rates are still extraordinarily low. The number of homes available for sale in Metro Denver dropped to the lowest level for the month of January in 23 years. Also, the length of time it took to sell a home was 25% shorter than a year ago. If you want to be successful in landing that dream home, know that it will take more than buying power to succeed.
These days, it is not surprising for a buyer to prepare to submit an offer on a property, only to discover there are already two or three offers already in, and the listing agent is calling for everyone’s “highest and best.” Unfortunately, many buyers lose out on “the one” after waiting one day too long or offering lower than the competition.
So what is the takeaway from this? This market is no longer a situation of buyer versus seller. It is a competition between you and several other buyers. If you want to win that competition, keep these guidelines in mind:
1) Get prequalified with a trusted lender. Even better, get preapproved. Sellers are much more likely to consider your offer when it is accompanied by verification from your lender that you can follow through on the purchase.
2) Consider not only the amount of the loan the lender will allow, but also what you feel comfortable spending every month. Take an honest look at your budget, and try to keep your house payment at or below 25% of your monthly take-home pay. When you have established what this translates to in the purchase price, don’t distract yourself by looking at homes that are priced higher than this parameter.
3) Ensure that your Realtor researches the buying trend in the area you are interested in. You need to know whether the home you fall in love with is priced accurately. With the combination of low inventory and the influx of buyers searching for homes, it is pivotal to know if it is prudent to give your highest and best offer right away.
4) Work with someone you trust and with whom you can communicate well. Choose a Realtor with a proven track record who prioritizes your goals, understands your lifestyle and is experienced in your area of interest. Also pay attention to the amount of time they have available to dedicate to you and your search. Realtor-client relationships that “fit” will enable you to successfully find the home that matches every one of your needs.
When you choose The Steller Group to represent you in your home purchase or sale, our skilled team and extensive professional network will be behind you every step of the way. We are committed to putting clients’ needs first. Our mission is to consistently deliver superior results. As your real estate team, we will listen to your concerns and focus on your needs. Exceeding our clients’ expectations and making their lives easier is what drives us. When you start thinking about a move, give us a call at 303.539.5228. We appreciate every opportunity to earn your business!