I’m a Realtor in Northeast Ohio, and just like so many places in the country, there are not many homes listed for sale right now, yet there are a lot of people looking to buy a home.
In the real estate industry, we call this a sellers market because there is such low housing inventory.
In economics, they call this supply and demand. There is too little supply (houses for sale) and too great a demand (buyers).
I hear people complain all the time about “no homes” being for sale or that the ones that are on the market are too expensive. While this is true to a certain degree, it’s the reality we face and that we cannot change.
Stoicism teaches us to focus on what we can control (our actions) as opposed to what is outside of our control (our surrounding environment/the housing market/other people’s actions). So in this case, as a buyer, what can you control? Luckily for you, I’ve come up with a list to share…
– Have you been pre-approved from a reputable lender? If not, you could put extra stress on yourself by trying to get this done prior to an offer deadline. Many sellers and their listing agents are asking for pre-approval letters or proof of funds (if it’s a cash deal) to be submitted with an offer to even be considered. They want to make sure that the buyer they choose to purchase their home actually has the ability to do so! Getting a pre-approval letter from a reputable lender will help reassure them that you (and that lender) can actually close.
– Do you have the rest of your financial picture together? Your lender will check your credit score, debt-to-income ratio, how much you have saved, etc. But once they’ve done that, you need to do your part and not make any big changes (unless they are adding to your net worth and/or increasing your income). Don’t open up another line of credit. Don’t purchase furniture for the new house or buy/lease a new car. Before making any sort of big purchase, consult with your lender. Also, be aware that there are costs to buy a house. This includes your home inspections and appraisal before you buy the home as well as your down payment, lender fees, and title fees at closing.
– Do you have a clear idea of what you want in your next home? You should have a must have list, a nice-to-have list, and a dealbreaker list. Basic things on this list are the amounts of bedrooms, bathrooms, square footage (sometimes), garage info (attached versus detached vs none, and how many cars can you fit in there), if you’re ok with an HOA, if you want/need a fence, a basement, etc.
– Have you connected with a Realtor? A local expert can tell you if your wants/needs are realistic in that area and within your budget. They can also help you understand what it takes to have your offer accepted in today’s market. Lastly, if you share with them what you’re looking for, they can set you up to receive email alerts anytime a property that meets your criteria hits the market.
– Are you prepared to act quickly on the right house? If you’re in a seller’s market and you find a great house – priced right, fits your needs, in the right location, etc – are you prepared to act? If not, it might be too late. Sometimes, speed wins…the first person to make an offer has the advantage.