What we don’t know is how long this pandemic will last. What we do know is buyers’ priority to find the ideal home. Here’s what to expect.
Many housing markets are rebounding across the country as pent-up demand is unleashed, and interest rates remain very low. Properties are going under contract in a matter of a day or two — even in the second home market here in NW Wisconsin.
Besides wearing face masks when looking at homes, here are five ways to help buyers and sellers manage expectations in this current climate.
- Anticipate, prepare and plan
As a buyer, you will need to get your ducks in a row. Sellers are still cautious about showing their homes and are requiring a preapproval or proof of funds to be submitted prior to seeing a home. That’s also assuming that you’ve truly reviewed the property online before physically coming in to see it. Understanding if the lake, community, and area amenities match the buyers preferences is important.
Sellers are only interested in showing their homes to buyers that are ready to make a quick decision, and they might not be interested in buyers who need to sell before they make the next move.
Buyers need to get real about their true motivations and financial preparedness.
- When you find what you want, be prepared to act fast
In markets like what we are currently experiencing, minutes and hours matter.
The ability to make a contingent offer on a home sale may be more difficult than it was six months ago if you are competing with multiple offers, and given this climate, there’s a very good chance you will be.
This is not the time to flaunt your armchair negotiation skills by making low-ball offers or making unreasonable requests.
It is not uncommon that a property receives multiple offers. Sellers are looking to work with the offer that nets them the most money with the least amount of hassle.
- Low inventory
As a buyer expect to find fewer choices. The question to ask is how long can you wait to find what you want? And more importantly, will what you want come on the market in a reasonable amount of time?
- Contingency savvy
Buyers who have a home to sell first will not be attractive to sellers.
The best chance of success with a contingent offer is if your home is already under contract or if you can limit the contingency to a short amount of time. Also consider a bridge loan to continue the sale if the buyer’s home has not yet sold.
- Inspections and repairs
If a buyer wishes to include an inspection and testing contingencies, be aware of the difference between a defect and common home maintenance repairs. Don’t let unrealistic expectations derail your deal. The seller is likely not going to be inclined to take care of a long list of items from an inspection report.