Five Traits of a Smart, Savvy Buyer in Today’s Seller-Controlled Marketplace

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Everyone knows the basic law of economics – when supply is down, demand goes up and that’s exactly what is happening with our real estate market. It’s actually happening across much of the nation and buyers everywhere are finding they need pull out all the stops to get the home of their dreams. That doesn’t mean you have to pay a lot more but it does mean you need to be smart. Here are five things successful buyers in today’s real estate environment do when there are a lot fewer homes and many more buyers.

Compare Renting Vs. Buying
Many people don’t realize how much more feasible it is to buy rather than rent a home. The only way to really know where you stand is to evaluate all your options. Savvy buyers know that it is not a dollar for dollar comparison. There are tax advantages to owning a home plus the intrinsic value of home-ownership is also a big plus. Why pay someone else’s mortgage if you can build equity in your own home?

Hire a Professional To Assist in the Purchase
Now that you have decided that purchasing a home is the right decision for you, it’s time to find a good Realtor® to help support you. Not only will they be able to share their industry knowledge and market trends that will help you make informed decisions but also you will have an advocate. He or she will help you achieve your goals, acting on your behalf and in your best interests. Contrary to popular myth, there is hardly any “deal” to be made by going directly to a listing agent. Smart buyers know they need a professional on their side.

Complete a Needs Analysis
To buy a home in a market where there are fewer homes than there are sellers, means that you must know what you want, what you are willing to forego and what you absolutely don’t want. To accomplish this it is a good idea to put together a list of those items in an in-depth needs analysis. That way when a good home that is priced right and located in a great location becomes available, you’re ready to weigh its pros and cons. Successful buyers these days are focused and are able to discern deal breakers from the smaller things.

Line Up Financing
With sellers in control and often receiving stacks of offers on their homes, they expect them to be accompanied by proof of your financing. Whether that means a proof of funds letter showing you have the cash on hand, or a preapproval letter from your lender demonstrating they are willing to lend you money – offers that get sellers’ attention are the ones with all ducks in a row. Additionally, you may or may not realize your options and a conversation with a lender will help you clarify which loan options work well for you.

Evaluate the Market Objectively
Finally, it’s important to be able to evaluate the market with an objective perspective. View properties and analyze the data with an open yet critical mind. Look at market trends and understand how they can potentially shape your own home buying experiences. Your Realtor® will be able to help by providing easy to read, useful market reports that point to current trends in your marketplace.

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If you are looking for your next home – we invite you to contact us today. We support many buyers’ home purchase endeavors and look forward to the opportunity to help you with yours!

Albuquerque Real Estate Market Presents Great Opportunities for Buyers and Sellers

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Each year, throughout the year we visit various conventions and events where we are given the opportunity to meet with our peers from others markets throughout the country. We compare notes, share what works for each of us, learn how to provide the best client experiences and we continuously improve as a result of these events.

Much of the US Market Experiencing Inventory Shortages
With these conventions also comes an in-depth look into how other real estate markets are performing and the insight greatly helps many of us to project what we can expect moving forward. Right now, the local Albuquerque real estate market is lagging about a year behind many other pockets throughout the US.  Low inventory and housing shortages have got buyers pulling out all stops to get the homes of their choice.

Interest Rates Continue to Hover at Low Rates; Home Prices Reasonable
But even then, low interest rates and reasonable home prices offer good opportunities for buyers with the added bonus of a fairly good selection of homes to choose from. Sellers on the other hand are able to get top dollar on their homes when priced right, in good condition and in great locations.

More Buyer Demand Expected Moving Forward
As we look ahead, the Albuquerque market can expect to follow in the footsteps of its neighbors and other areas in the country that are experiencing shortages of inventory, resulting in multiple offers, bidding wars and achieving at or above selling price. We will continue to see increased demand as buyers are eager to lock in the low interest rates that still hover at all time lows.

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If you’ve been on the fence about buying, selling or investing in a property – now is a great time to jump off and consider taking it on. And when you do make the decision to take the plunge – we’ll be right here to assist you with your real estate goals. Contact us today!

Six Ways Buyers Can Turn Up the Heat and Make an Offer Sellers Can’t Resist

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When you’re in the midst of a seller’s market there really is very little you can do but just watch the market, find the right home and jump on it! Because if you don’t, there’s a good chance someone else will beat you to it. But if you are making an offer, there are some ways you can make it one the sellers can’t refuse. Here are six key strategies to use as a buyer making an offer on a home in a very competitive seller’s market.

Prove Your Ability to Pay
Gone are the days when you could present an offer on a home with the expectation that you would apply for a loan after it’s accepted. Even when we’re not in the midst of a seller’s market, sellers today expect to see proof of your financing or funds. They want to know that your offer is a viable one and having a preapproval from a lender gives them the peace of mind needed to proceed. Unlike being prequalified, preapprovals entail a credit pull and a look at your financial position, including things like debt-to-income ration, job history and more.

Make It Reasonable
As you may already know, an earnest deposit accompanies an offer. So as you decide the amount to put toward your earnest money deposit, be sure to be reasonable. Typically 1% of the purchase price, you can go up or down depending on your interest but generally, you should stay at or above 1%.

Don’t Lowball the Offer
There was a time when buyers could get away with making lowball offers but those days are long gone. Contrary to popular belief, making a reasonable offer will increase your chances for stronger negotiations. A higher offer is the better offer because you won’t offend the seller.

Go Easy on the Contingencies
When buying a home there can be a lot of contingencies in place ranging from waiting for the sale of another home, to inspection results to mortgage contingencies as well. Some are unavoidable but whenever possible if you can reduce the length of time for some of these processes or better yet, eliminate the contingency altogether – the seller will be more inclined to accept your offer.

Keep It Simple
Rather than bog down your offer with complex language that is hard to read and complicated to understand, make it as simple as possible. There is no need for legalese and if you can, put things in bullet point form to really make it easy for the seller. Less is more but be sure not to leave out anything important.

Make It Personal
Sometimes multiple offers will come in and they are all very close to one another in price, terms and contingencies. Believe it or not, these are the opportunities for buyers to turn on the charm – literally. Write a personal letter explaining what you love about the house. Introduce yourself to the seller and do it in a handwritten note or card that will be memorable to them when they are considering all offers.
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Keep in mind, no two offers are the same and no two situations are the same – so you will benefit from having a strong Realtor® by your side, working in your best interests. Contact us today so we can work to getting you the home of your dreams!