The short answer is – there is a shortage of home inventory under $200,000. There just is.
….So why do I keep seeing all these for sale signs?”
There are 3 simple reasons:
There are approximately 30,000 + listed homes in the MLS and First MLS system, down from the 48,000 + homes at the height of the market. Competition is stiff for homes that are priced under $200,000; downright fierce for homes priced under $150,000, mind-numbingly crazy for homes priced under $100,000, and next to impossible to get without cash for homes priced under $50,000. The cost of land and building is high, so builders aren’t really building any communities for less than $200,000 in high demand areas.
The high volume of distressed homes have been greatly reduced by the strong buying market of cash investors and savvy home buyers. The economy is recovering, and most homeowners who could not afford to keep their homes either short sold them, foreclosed them, or modified their loan;
….So what can I do?”
Be prepared, be VERY prepared.
Aside from knowing what you want, be flexible about the area you’d like to live in. Sometimes going to a bordering county may get you what you want with less competition
Be Flexible ……. Again With Your Move-in Time Frame. A flexible timeframe of when you need to purchase can make a huge difference. Most families choose to purchase when the kids are out of school, making it easier to move and coordinate the new school during summer breaks. This is why spring through the beginning of fall is the peak time for purchases. If you can purchase outside that time frame, you’ll have less competition.
Losing Doesn’t Mean “Don’t Buy”: I can’t tell you how many times buyers get frustrated and say “…this must be a sign that I shouldn’t buy“. No, it’s a sign there’s more buyers than homes.
Stop Always Trying To Get A Deal: A seller will be willing to give you a deal when they are desperate for buyers. Offering $5,000 to $10,000 less than asking price on a home just because it needs work doesn’t mean that the sellers and their agent haven’t done that already. As a matter of fact, they may have priced it low so they can have a bidding war and get more for the home. The buyer who wins the bid today is the buyer who learned that hard lesson yesterday.
If you follow these few tips you can be well on your way to getting into your perfect home.