Existing-home inventories have been at record lows since the start of the pandemic. The number of homes for sale nationwide plunged 42.6% year-over-year in January, according to realtor.com®. And 88% of 161 metros tracked by the National Association of REALTORS® posted double-digit annual price increases in the fourth quarter of 2020.
The reasons vary across the country as to why competition for homes is so fierce, but right now, one of the main driving forces continues to be the historical low-interest rates. It has attracted renters wanting to get into their own houses—along with the desire for more space during the COVID-19 pandemic. Also, people who already bought a home a few years ago locked in low enough interest rates, and they don’t want the hassle of selling and trying to find something better. So, they stay put.
In order to navigate this current market, Buyers need to be emotionally prepared for the possibility of finding a home they didn’t envision, or for paying more than they expected.
There are several things a Buyer can do to make their offer more attractive, such as:
Put in an escalation clause. The buyer must be willing to go a certain amount over the best offer.
Put a bigger, earnest deposit down.
Waive contingencies. If the appraisal comes in low, the buyer doesn’t ask for a lower price.
Make a cash offer.
For more information on how to succeed in finding your next home, call me. I am here to help!