Monday, March 09, 2015 / by Jen Koenig
The National Association of REALTORS® recently announced that there's a housing supply shortage. While generally the Midwest hasn't been experiencing the same increase in sales that the rest of the country has, here in the Madison area we are definitely experiencing a huge increase in buyer activity. Specifically here at The Huemmer Home Team, we've had 15 accepted offers in the past 3 weeks! Agents all over the area are looking at lots of buyer activity but low inventory. This has lead to a definite seller's market: homes are selling quickly and for higher offers than we normally see.
This doesn't mean that it's a bad time to be a buyer. Sellers listing at this time of year tend to be quite motivated. It is important, though, for buyers to be aware of what's going on in the market, and for buyers to adapt how they are house hunting in order to get the home of their dreams for a price they can afford. The article below lists 5 home-buying strategies which can help ensure success. The author suggests 1) making a good first impression (come to your Realtor ready with your must-haves list & write a letter about why you love the home to accompany your offer), 2) get pre-approved by a lender, adefinite essential in this market, 3) shop within your price range so you can be sure you have the top offer on the table, 4) be flexible (and use your imagination: look past imperfections in the home which can be easily remedied), and 5) be ready to see listings as soon as they pop on the market.
Here's an excerpt (click the link below for the full article)
"Shop within your price range. In a seller's market, it's wise to shop for homes within or slightly below your price range. This will give you more room to make full-price offers or above in case the home you want is in a bidding war with other buyers. You'll be able to pay your own closing costs. Trying to buy a home out of your reach during a seller's market will only cause you and your agent frustration."