So Home Inventory Is Low - What's Next?

Homes in High DemandWe have all heard over and over that home inventory is low around the country.  Real estate has recently become a "good" investment and many people, including big companies, are scrambling to get their hands on it.  Prices have started to rise for the first time in years, and mortgage rates are at historic lows creating a big shift in buying momentum.  So what does this mean if you are trying to buy or sell your home in the near future?

If you are selling, you are in a good position.  Right now you should see an increase on your home's value which may allow you to make that move to the next step of real estate you have been trying to get into.  The rising prices also create a demand for you home, in that people are rushing to buy something before prices grow higher and they can enjoy the benefits of the current trends as well.  No matter if you are in Orange County, New York City, or looking at homes in Boulder, Colorado, demand is high.

It is a seller's market, but don't just think you can skate through a sale.  To make the most of your transaction, spend the time and do it right.  This means making the effort to fix-up, clean and stage your home.  Now this does not mean that you have to spend a lot of money to overhaul your entire house, but you should make minor repairs that are cost efficient.  Fixing leaky faucets, wall dings, and painting interior walls can be a good way to improve the appearance of your home to potential buyers.  Depersonalize your home and stage it so that people looking at the home can imagine themselves and their furniture in that space.  If this is out of your realm, consider hiring professionals to help you or check to see what assistance your agent can provide.  A clean, well staged home with a nice appearance will show, and sell, better than one without these qualities.

If you are buying a home right now, you have to work and stay diligent.  Competition is fierce and properties are moving extremely fast.  This means that you must to be on the listings as soon as they come out and have a solid agent who is monitoring them as well.  It is their job to find properties when you can't, like when you are at work for example.  Be prepared to move quickly, and make a fair offer.  Multiple offers are common right now, and coming in ridiculously low on property is no longer a good strategy.  Shop within your price range and probably be ready to come in at asking price, or above.  A personal letter is also nice touch to add with your offer and can really make a difference in having it accepted by the seller.

When selling and buying at the same time, make sure you have a plan to make the move.  You may sell quick, but have trouble finding a new place to live.  There are ways to work this in your contracts, but be careful not blow a good deal because you need to make perfect accommodations.  Create a plan, and a backup plan, to make sure you are not scrambling when need to jump on a good opportunity.

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