Good news for First time and entry-level home buyers! They were frustrated with the recent surge in competition for homes. A few months ago, competing against cash offers and multiple offers was over the top frustrating for the first-time and entry-level home buyers. It was forcing home buyers on the sidelines to wait and see if the market cools a bit.
A recent study from realtor.com showed that the inventory of first-time home buyer homes is up by 6.4% during September 2021. This gives you more options and a way to take advantage of record-low mortgage rates still.
How to make an offer in 2021
As the inventory for entry-level homes is increasing and there is a shortage of homes available on the market, buyers have to make offers they might not otherwise make.
- Look at homes under your budget
- Make competitive but realistic offers
- Be on the ball, watch the new listings and look at the house and make an offer ASAP
- Be pre-approved and ready to make offers
- Talk to your real estate agent weekly to stay on the same page
- Don't be afraid to get your hands dirty and look at fix-up homes.
- Never waive the inspection
Perhaps a common misconception is that a home must be in pristine condition to be worth buying. Many people buy houses that haven't been updated for years, and the cost of updates can add up quickly. But most people re-do the home anyway. Start with a home that needs some TLC and make it your own.
If the home needs paint, flooring, and appliance updates, this may be a great opportunity. Most people move into a home no matter how new and updated and wind up painting and re-doing floors to make it their own. Why not start with a home that needs a little TLC. Make the updates before you move in.
Watch the overpriced homes with a lot of days on the market.
In real estate, sellers often overprice their homes to leave themselves room for negotiation. This is a common practice in the market, and it has been since the early 1900s when investors sold the property. This is not always a good plan to sell a home in 2021.
Put that overpriced home on your favorites, and you will see, the seller may get lucky and sell it, or the price reduction will happen, and now you have a more reasonable starting point for your negotiations.
Typically agents know they have an overpriced home, and after a certain amount of days on the market with low/no showings and no offers, the agent will be looking for a price reduction.
When it comes to selling residential real estate, most agents have a certain amount of time to put into the sale before moving on. This time period varies from agent to agent, with some even putting in as long as six months. So you may see a few price reductions along the way, especially if the home is not getting enough attention.
The average number of offers received on homes for sale is down.
The National Association of Realtors (NAR) released a new survey to understand the current housing market and the recent trends in July of 2021. The survey found that sellers are experiencing a decline in the number of offers received on homes. This is because of a slightly increased number of homes available for sale and less aggressive homebuyers.
Showing Time has been seeing a decline in showings per listing for the last few months.
It seems as though first-time homebuyers finally have a chance to claim the property they've been dreaming of. The Real Estate market is still highly active, but with less competition from potential buyers, it's easier for those looking to buy their first home.
The most significant change the real estate market has seen in recent years is the rise of "showings." When homes are marketed, they are often given a "showings" count, which indicates how many people have looked at the listings. The more times a home is shown, the more likely it will sell quickly.
The good news for first-time homebuyers the showing time's monthly showing index has been down for the last four months. Less competition will give you more of a chance to get home!
More good news for first-time homebuyers rates is still at record low levels.
Mortgage rates are still remaining at record lows, and this is good news for first-time homebuyers. For those wanting to buy a house, a mortgage payment may not be as concerned with these low rates.
Many first-time homebuyers are now able to find homes that offer a lower monthly payment than renting. However, today's first-time homebuyer is a savvy individual, and it will be necessary for sellers to market their homes on the internet and price accordingly.
Bottom line:
Record low rates, a slightly more stable market, and a company that listens to your needs. Contact Us anytime so we can go over your goals. Even if you are just starting out, we would be honored to help you get on the right path.
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