Should I buy a home in a seller's market?

Posted by Chris Perkins on Monday, May 6th, 2019 at 11:47am

For many, buying a home can be an incredibly intimidating prospect.  Perhaps it’s the fear of not knowing what to do or where to start.  Perhaps it’s the commitment that comes with owning your own home versus the care free nature of renting.  Maybe it’s the down payment or the other upfront costs associated with a purchase.  If you focus on these things without giving equal attention to the upsides, you’ll be paralyzed by fear and likely never make a decision.  Renting is easy and because it’s easy, you don’t get anything in return except a roof over your head.  You cover all the costs associated with someone else’s asset.  You get a roof, while the seller gets the benefit of a long term investment, funded by you. 

Buying in a seller’s market

In current circumstances, buyers do not have the choices they used to.  They are not given as much time to make decisions because there is less inventory and higher demand.  In an increasing market, it’s easy to fall into the trap of “waiting for the right home to come along.”  If you cannot find what you are looking for within your budget, you need to adjust your expectations. Waiting in a seller’s market does nothing but worsen your position.  Prices increase so if you cannot find what you like today, you are infinitely less likely to find what you like a month from now. 

Think of your first home as a step on the property ladder.  You can’t appreciate the views on a higher rung without using the ones lower down.  Compromise so that in a couple of years when you’ve built equity in your home, you can use it to purchase something you love.

Make your house hunt a priority

If you do not commit time to your house hunt and actively communicate with your REALTOR®, you will miss the best opportunities.  By making your house purchase a priority, you’ll be able to view new listings as they hit the market.  You may not have a lot of time in the moment to make a decision but this does not mean you are making a rushed decision.  It means that by monitoring new listings and the market, you’ll be equipped with the knowledge to recognize an opportunity when it arises.

Once you’ve bought a home, you are no longer a buyer in a seller’s market.  You’ve made the excellent choice to become a property owner in an increasing market.  You are now a seller in a seller’s market and quite simply, that’s the best place to be.

For more information about buying a home contact us below:

Chris Perkins, Broker/Owner
HaliPad Real Estate Inc. 

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