We are chug-a-lugging into 2017, and with each month, the housing market becomes more seller-oriented and more difficult for buyers to navigate. I told you it was coming. Earlier this year, I wrote about the 2017 Real Estate Trends Affecting Sanpete County, and those trends have affected how those buying a home in 2017 should adjust their expectations.
So how will buying a home in 2017 be different?
To put it bluntly… there are very few homes for sale …and many Realtors expect it to get worse. Buyers are ready to buy but lack an inventory of homes to purchase. This is exaggerated by the fact that the nationwide median home price rose past $250,000 for the first time ever, according to Realtor.com, creating a perfect storm for a sellers market.
Don’t fret yet. I have outlined 5 ways buying a home in 2017 will be different so you know what to expect:
- Obtain financing before you visit homes. If you show up without a pre-approval, you will have a hard time moving forward with sellers. Sellers are receiving multiple offers. Don’t be the offer that doesn’t have a pre-approval.
- Be patient, it’s going to take awhile. The low inventory and high amount of buyers means buyers are more likely to encounter multiple offer situations. Your new home search might take three to six months.
- Prepare to jump. If the right home and right terms appear before you, avoid any hesitation. Thinking about a property for a few days or a week may cause you to miss out. Of course, don’t jump in without looking first.
- Don’t start a negotiation with a low-ball offer. Always use your resources to make a fair market value offer on a property. The lack of properties on the market will have sellers ignoring low-ball offers altogether.
- Carefully consider your contingencies. You may benefit from foregoing some contingencies in your offer, especially when competing with another buyer. Contingencies protect you, but they can often scare sellers. That being said, any offer on a home would not be complete without at least a discussion of contingencies.
Overall, 2017 is shaping up to be a great year for homeowners. If you are breaking into the market, make sure to do research on the process prior to scheduling showings. You want to be ready to take advantage of your dream home when you see it. Good luck!
What other ways can I help you with the research for your next home purchase? Let me know in the comments.