Buying a home can be very exciting but depending on the state of the real estate market it can present its challenges. Our recent market here in the Southeastern Michigan area has been what we call a sellers’ market.

WHAT IS A SELLER'S MARKET IN REAL ESTATE?

When buying a home, it is important to understand the different types of markets that exist. There are three common market times: seller’s market, buyer’s market, and a balanced market. A seller’s market exists when there are more buyers competing for homes than homes available to purchase. Without getting too specific we would calculate the number of months it would take the current inventory of homes to sell. When this number goes down, we shift towards a seller’s market and when this number increases, we move towards a buyer’s market.

For home sellers they love being in a seller’s market as most homes move very quickly however this time of the market is very tough for buyers. Once a buyer decides to purchase a new home being in the correct position to purchase with the right help makes all the difference.

Below are some awesome tips for buyers purchasing a home in 2019:

Get your Pre-Approval

One of the most important steps to purchasing a home regardless of the type of market is getting pre-approved. Why look at homes that you can’t afford or you’re not comfortable paying the mortgage. Before any seller looks at offers, they expect all buyers to be qualified. If you end up going up against multiple offers, then this pre-approval will make all the difference. Here at HomeCraft of Michigan we work with some amazing lenders that work when you need them not 9am – 5pm Monday – Friday.

Down Payment

Another big part of any agreement is the buyers down payment. If you have the money, then put a large deposit down to let sellers know you are qualified and have some money to work with if any issues come up during the escrow period. Putting down a large deposit also reduces the amount of interest you will pay over the life of the loan. When you’re looking at a 30-year mortgage this adds up quickly.

Be Ready to Work Hard

Since our current market conditions look like we will be in this seller’s market for a while longer you must be ready to see homes as soon as they hit the market. Most homes have multiple offers within the first 12-36 hours. If you are only able to see homes one day per week then you might miss out on some nice homes. In addition, a great agent can view properties for you if your schedule does now allow flexibility.

Select a Great Agent

Choosing a great agent that knows the area and has a team available to help can make all the difference. During these seller markets, it’s critical that buyer agents can accommodate your schedule when needed. Once you do find the right home this same agent will need to explain the process and make sure your offer has the best possible advantage especially when multiple offers are in hand.

Decide if you Need Contingencies

There are many reasons why sellers select certain offers over others. Most people think that it always comes down to price. We all know that price is very important however the more contingencies that your offer has the less likely it is to be accepted. For example, if you have a home to sell and the offer is contingent upon your home selling then your chances of winning a multiple offer bid are extremely low. Other contingencies that sellers don’t like to see are long inspection periods, appraisal contingencies, and extended lawyer review timeframes.

Stay Flexible

During a seller’s market when your dream home hits the market you must stay flexible. Most of the time buyers will need to offer over asking price but it does not always come down to price as mentioned above. Can you offer a flexible occupancy period, quick closing, inspection minimum, or free occupancy? All these options work great and help a seller decide what offer would work the best for them. If you’re working with a great buyer’s agent, then they will have already asked the seller the important questions so they can produce the best possible offer.

As you can see working with the right agent in this tough market can make all the difference in the world. Sometimes you just need to work with an agent that understands what is important to you plus can learn what the seller’s needs are to make a deal win/win for both sides.

Have you decided to purchase a new home in 2019? If so then reach out to us here at HomeCraft of Michigan. We are a local boutique real estate team that provides an exceptional customer experience. Most of our team has been in real estate for over 15 years and it shows. Don’t trust buying a home in this market to anyone. Here at HomeCraft of Michigan we are “Bringing the Craftsman Approach Back to Real Estate”

Call, Text, or Email us here at HomeCraft of Michigan:

734-718-8668 or soldbyhomecraft@gmail.com

In a sellers market, such as the Plymouth/Canton area, it is natural to wonder if you need to spend money getting your home ready for the market if you are thinking about selling. Many Plymouth/Canton homeowners think since inventory is low, that they can save money by not spending money on repairs, updates, or staging. Nearly every month we see examples where sellers save time on the market and net more money in the end by spending the time and money up front to get their home ready for the market.

Save Time

At the beginning of this year we had a referral contact us as they had a rental home where the lease was about to expire. The tenants already contacted the owners to let them know they were moving. It was about this time that the homeowners contact us to walk the property and give them a complete market analysis of the home including updates/repairs, staging advice, and a marketing strategy. Their home backed to a major road in the area and the area was very active. They decided to wait on listing their home while they did some repairs and obtained the city certifications needed to sell. It was awesome as they took almost all of our advice inside and out and the home was in great shape and ready to list. We went and toured their home to work out a timeline. At this point they told us since their home had a lot of traffic they decided to sell “For Sale by Owner”. We advised them that this was not the best choice as it was the hot spring market but offered to help them and guide them as needed. We checked on them ever week and they had a lot of traffic initially. Finally after almost 3 months on the market FSBO they let us take over. We went through our pre-marketing plan and then listed the home with new professional photos and set into motion our custom marketing plan. Within 1 week we had 16 showing and I personally showed the home twice. We sold the home for the exact list price that they had the home listed for almost 3 months. At the closing my clients looked over and asked why they didn’t listen months ago.

Make More Money

In another example, our team helped a seller just a few months ago. We consulted with the homeowners just after an identical town home went under contract. After meeting with us, they spent $3,000 on painting their home, de-cluttering and getting it staged. The result was a bidding war that ended up with them getting a cash offer that was $15,000 higher than they thought they would get and $5,000 higher than the other similar unit.

The Bottom Line

No one likes to put money into a home they are about to leave, but more often than not that upfront investment will save you time on the market, make you more money and create a lot less stress throughout the process. So where should you spend your money?

If there are any obvious repairs needed start there. Not only will these items scare away offers, but they will become negotiating items on home inspections.

Get a fresh coat of paint. Make sure you go with neutral colors.

Stage the home or hire a professional stager. Our team will give you advice on staging or hire a professional in the listing process because we think this part is so important.

Consider making some updates if needed. Updating appliances, flooring and counter tops can also go a long way.

Give your home some curb appeal. Make sure the home looks great from the outside.

Finally, do not let your efforts go to waste.

Over 90 percent of buyers see your home first online. Make sure the photography puts it in its best light. Nothing is worse than spending the time and money to get your home ready for the market and then cutting corners on the photography and wasting those efforts. Our team includes high quality photography and online videos optimized to attract more views than our competition so that you home is seen in its best light by the highest number of buyers.

If you have any questions about how to get the biggest bang for your buck when selling your home, for more information about our team check us out at www.robertyoder.com or email robertyoder00@gmail.com or call/text 734.718.8668 at anytime.

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