Much of the talk this year has centered on the fact that we continue to experience a seller’s market.
Record high prices this summer and low inventory resulting in increased competition for properties are just two of the factors that lead to a seller’s market.
The situation must be leaving potential buyers wondering what they should do. Continue to pay rent and their landlord’s mortgage while waiting for the market to change? Or just resign themselves to paying “too much” for their new home.
Here are a few things potential buyers should consider:
The market sets prices. An overpriced home is overpriced, whether it’s a buyer’s or seller’s market. While you might ending paying more for your home than you originally expected, you won’t pay too much.
Be realistic about your must haves. Are granite counter tops really a deal breaker? Is a third bathroom necessary? Being clear about what you absolutely need in a new home and what are niceties will help when considering price range.
It’s imperative to be pre-approved for financing. Knowing what you can afford will help you focus your search and keep you from being disappointed when the home you fall in love with is outside your price range,
Most importantly, work with a Realtor, who is familiar with the communities where you’re interested. Your sister’s cousin’s husband, who is an agent based 25 miles away, will not have an accurate sense of what is a reasonable price in the area you’re looking. So, there’s a good chance you will end up paying too much, (This just happened in our own neighborhood.)
If you’re thinking about buying and would like to learn more about your options, please call us at 508-568-8191 or contact us via the comment box. We’d be happy to meet with you.
Home ownership may be in your blood.
According to an analysis of millennial homeowners by the Urban Institute, the homeownership rate of those whose parents rent is 14.4%, while the rate among millennials whose parents are homeowners is 31.7%! According to the report:
“A young adult’s odds of homeownership are highly correlated with their parent’s home ownership.
Without controlling for such factors as age, income, education, marital status, and race or ethnicity, there is a 17 percentage-point gap between the home ownership rate for young adults whose parents are renters and young adults whose parents are homeowners.”
The study also revealed that as a parent’s net worth increases, so does the likelihood that their child will own a home. These two findings are not surprising as we know from the Survey of Consumer Finances that a homeowner’s net worth is 44x greater than that of a renter.
So, a parent who is a homeowner will have more wealth which will, in turn, increase the chances that their children will own their own homes in the future.
It’s always nice to know that your work is appreciated. We recently received the following five star review on Zillow from a seller.
Mari and her team were phenomenal. She recently represented us selling our home in Mashpee. There were a lot of moving parts and it was a bit of a roller coaster. But Mari always kept her calm, putting things in perspective, and was tremendous at getting our home closed quickly for over asking price. Couldn’t have been happier!
We sincerely appreciate the positive comments.
Mari and Hank