It seems like many daily activities over the years took on speedy and trendy titles: Speed Dating; speed meetings; speed networking; and speed shopping, to name a few.
Well, now we have been, and continue to be, in a real estate market of “Speed Home Buying.” The market for home buyers is super competitive. It’s common that when a new home listing is introduced to the market via the MLS, there is a flurry of action right away and showings are booked back-to-back for the first several days. Sellers enjoy the attention their home is getting, but soon tire of needing to be away from their home to allow realtors and buyers to tour it.
Then sellers begin to receive offers. That’s where real “speed buying” is obvious. In mid 2021, the national average number of days from listing to under contract was 17. The reason is still the same. We have an imbalance of supply and demand of homes available for sale and the demand seems to be rising still. That kindles an overheated and competitive environment and encourages some unique offers to buy.
“Cash is King” is a statement heard about buyers who have sold their homes in another market that left them with a substantial amount of cash in their pocket from the sale. The cash buyer can compete in our market to purchase a home quickly, sometimes in less than 30 days. That is speed buying! Sellers are hard pressed to pass up an offer from a cash buyer when they need to either move quickly, or possibly want to make an upgrade in home purchase themselves.
What about the rest of the buyers who aren’t walking around with a boatload of cash at their disposal or maybe have a home to sell? A further complication exists for buyers who need to sell a home before buying a home … this requires some serious and meticulous planning. In either case, don’t despair. You can still compete to buy a home using a well-founded plan made possible by working with a high-quality experienced mortgage lender and realtor.
Planning before shopping is paramount. Your mortgage lender will evaluate what mortgage amount can realistically be supported by your savings position, home sale and income. In the scenario of needing to sell a home to buy a home, your mortgage lender may be able to assist with gap financing to make the new purchase possible before closing on the home you are selling first. Gap financing requires special circumstances to be in place for a well-qualified seller/buyer and it’s not for everyone to consider.
The Realtor is the next stop in the progression. Armed with a solid plan from a buyer’s mortgage lender, your realtor will help you make a purchase plan to find the right home at the right price, and help negotiate a workable contract for purchasing that home, keeping in mind the performance dates that need to be adhered to that make an on time closing of the new home purchase possible. Lots of moving parts, but an experienced Realtor can help make the entire process possible with less stress.
Help is on the way in other fronts. Looking around Woodland Park and Teller County, it is obvious there is a fair amount of new development and home building happening right now. The high demand housing market breeds alternative construction methods and higher density living environments. You will see some examples of these methods in our market soon.
Michael Harper is owner/broker of Michael Harper Real Estate. Contact him through his website, MichaelHarperRealtor.com.
source https://www.bisayanews.com/2022/02/15/speed-home-buying-home-and-real-estate-pikes-peak-courier/
No comments:
Post a Comment