This spring’s housing rush has begun. Homes in Dallas, Denver, Boston, Washington, D.C., Seattle, New York and several cities in California are selling in days and even hours, and many are generating bidding wars.
Decreases in inventory are driving the competition in these markets. In February, inventory declined 19.2 percent year-over-year, according to the National Association of Realtors.
Buying in a competitive market:
Choose a good agent. When hiring an agent in a competitive environment, you want an individual who moves quickly, is responsive and is a skilled negotiator. Meet with a few realtors before choosing one to represent you.
Know what you want: Do your research. Identify the area or neighborhood you want to buy in, clarify what type of home you want, and think about what concessions you would be willing to make if the home was the right price in the right location.
Communicate: Be very clear with your agent about your expectations. You don’t want to waste your time or theirs looking at homes that aren’t a good option for you.
Come prepared: Make sure you are pre-approved for a mortgage and able to close quickly.
Selling in a competitive market:
Create the perfect listing. Do your research on what features are desirable to today’s buyers and include those buzzwords in your listing.
Make sure your listing shows up in the right places. Your listing should show up on sites like Trulia and Zillow, as well as on mobile real estate apps. Check that the information on your property is correct.
Don’t be greedy. It may be a seller’s market, but if you price your home too high, you’ll miss out on the multiple offers and bidding wars those offers generate. Research comparables in your area and price your home accordingly.
David Paget is a Mortgage Loan Originator for W.J. Bradley Mortgage Capital, LLC. He may be contacted with your mortgage questions at (951) 961-0689 or by email at David.Paget@WJBradley.com . NMLS #268595