Time. Kills. Deals. In a balanced market, time kills deals. This current market especially has been challenging. Our market continues to follow suit with the inventory shortage across the country. The rapid increase in working remotely or from home, coupled with low interest rates, and low inventory has created a perfect storm for buyers and sellers. On April 5th, Lending Tree posted interest rates at 5.48%. It is expected these rates will continue to rise for the remainder of the year. Post-pandemic chatter about increasing rates, inflation, the war in Ukraine and an imminent recession flood the news. This coupled with buyers’ upcoming personal deadlines whether that be lease expiration dates or work start dates has added to the already growing anxiety of buyers. Purchasers must be financially, physically, and emotionally ready to act if they want to be successful in realizing the goal of homeownership.
Financially: In a previous article, I emphasized the importance of securing a pre approval letter from a local lender BEFORE the home search. If you’re paying cash, get your proof of sufficient funds from your financial institution. If you need to liquidate accounts to have the cash ready for closing, be sure to check when those funds would be available. Some accounts may have a period of time before those funds are available.
Physically, you must be accessible to see the property as it becomes available. Once prompted by your REALTOR®, you must be available to schedule the showing. If a desired house hits the market on Tuesday, it will likely not be available the next day let alone the following weekend. Explore virtual showing options with your REALTOR® if it’s not convenient for you to see it in person.
Emotionally: Another factor to your readiness in purchasing a home is the emotional preparedness. Be sure you are 100% on board with moving forward with the purchase before wasting the time of the Seller, REALTOR®, and yourself. If acting with a partner, be sure you and your partner have a list of clear search criteria and areas of compromise before setting out to tour homes. Reminder: the perfect house does NOT exist. If it checks the boxes and it’s within your budget, don’t hesitate. This can especially be challenging for strategic and analytical thinking people. I know several people who suffer from ‘analysis paralysis’, which means they will analyze a decision to the point they simply don’t make the decision. Or by the time the decision is made, the opportunity is no longer available. Time. Kills. Deals.
For the analytical and strategic buyers, create your ‘must have’ list and/or ‘no compromise’ list ahead of time. Refine your list on the front end of the search. Use and abuse the tools online such as GOOGLE EARTH and MLS pictures. You can review the seller’s property disclosures and property inspection reports later in the transaction. Try not to get hung up on details and miss the opportunity on the big picture. If you wait too long, it will not be available. Time. Kills. Deals.
Until next week, love where you live. And if you don’t… contact your local REALTOR®.
Brian Haufe, 2022 MBOR President