SO…You’re Ready to Shop for Your New Home!
So now you’ve talked with some lenders and know what your home buying “budget” is, what’s next? We like to work with our buyers in an educational way. What we mean by that is educating you on what the market looks like…is it a Seller’s market, a Buyer’s market, or a Neutral market? How do each of these markets affect your purchase? Additionally, you educate us on what exactly you are looking for!
To begin, let’s talk about the types of markets we see in real estate in general. In a Seller’s market, the market favors the Sellers and is harder on Buyers. Real Estate is a supply and demand industry, so a Seller’s market shows up when inventory is low and Buyer interest is high. There will be multiple offers (more than one offer per home) and price escalations in a Seller’s market so the competition can be fierce from a Buyer’s perspective. Buyers sometimes get caught up in the emotional “auction” or “bidding” type mentality of a Seller’s market, and our caution is always here in protecting your interest during these highly emotional moments. Some Buyers want to waive all contingencies to make sure they get that “perfect” home! We are here to remind you that contingencies (or conditions) in an offer to purchase are there to protect you and should not be waived without an extremely thoughtful decision-making process weighing all the pros/cons of that strategy. This type of market can easily have a Buyer paying top dollar or more, with few contingencies in place to negotiate, or terminate the purchase should something negative arise during the process.
A Buyer’s market is much easier on Buyers, and therefore harder on Sellers trying to get top dollar for their home. This market shows up when there is higher inventory and fewer Buyers…remember it’s a supply and demand industry! More homes on the market gives Buyers more choice, and the ability to negotiate repairs needed or closing costs paid by the Seller. The burden to make sure their home is in the best condition possible becomes heavier on Sellers in this type of market.
Then finally, there is a Neutral or Balanced market, where neither the Buyer nor the Seller has a real advantage. This hasn’t really happened much in the Seattle and surrounding area real estate market in the 18 years I’ve been in real estate. It’s really either been feast or famine so to speak.
Now that you know the three basic market types, the next step is to have us educate you on different property types, areas, styles and price points…then YOU get to educate US on your hopes, dreams, likes and dislikes. We call this our “education day”. This is where we will go “window shopping”…not buying, just shopping. We’ll go into different types of homes in various areas with you. We’ll talk about each one and this will help us understand more about how and where you want to live; it gives us first hand information as you walk through homes and make comments about a particular home, style, area. We start your search out with a big, bird’s eye view and over time, through our education process, will continually adjust the lens of our view to a more refined, focused search until we find that One. Perfect. Home. Just For you! Let’s Go Shopping!