I Thought We Were In A Buyer's Market!!! Where Are The Homes???

FINALLY!!!! The day has come where the stars and moon have all aligned and you have all of your ducks in a row! You've secured a wonderful lender, an exceptional Buyer's Agent, you've saved ample funds, you have your list of all that you could ever want and desire in a home, and you've found at least six within your preferred area that meet your criteria!! You pick on the phone to contact your agent and quickly provide them with the list. Your agent advises that they're going to check availability and call you back.
Within minutes, your phone rings and your agents voice is no longer draped with enthusiasm! Oh no!!! You quickly pickup on the notion that something's wrong so, with much trepidation, you ask..."what's wrong"? Your agent informs you that of the six properties that you've found, only one is still available and is already in a multiple offer situation. Your agent goes on to explain that the inventory levels are low within your area and, combined with buyer demand and low interest rates, many buyers are finding themselves fighting for homes!
Instantly, your mind toggles back to the latest news report that you heard last night that stated that we were still in a buyer's market....but this certainly doesn't feel like one! What now???
Unfortunately, this is a scenario shared by many buyers in the Coweta County or Newnan, Georgia real estate market today. In fact, as of today, we have a 4.7 months supply of inventory. Which basically means that we're now in what's considered to be a Seller's market! Within the past year, we've sold 1872 homes and currently have 728 on the market! Pretty scary news if you're a buyer. We're averaging selling homes at a rate of 156 per month! However, it doesn't mean that all hope is lost if you're looking to purchase a new home. There are some steps that you can take to help prepare you for battle!

 

* BE REALISTIC - Be certain that your agent is well aware of the current market conditions and are able to appropriately convey them to you. If homes are selling like hotcakes in your market, then you certainly need to know! This will directly affect your negotiating leverage position! Don't waste your time and risk the possibility of losing the home by submitting a "low-ball" offer...just know that if you want the home, there's a high likelihood that there are other buyers who want it, too.

* BE PREPARED TO PAY YOUR OWN CLOSING COSTS - Now I'm well aware that in previous years, buyers could ask for the world on a silver platter in the form of seller paid concessions and would pretty much get it. HOWEVER.....that was the, and this is now! Keep in mind that it will be up to you to make the best possible offer if you really want the home. This may mean footing your own closing costs (isn't that a novel idea)! If you're a little tight on funds, then you may be able to increase the offer amount by the amount of the closing cost contribution that you're asking of the Seller. If you decide to take this route, be sure to have a conversation with your agent about the possibility of running into appraisal issues.
 

* MAKE YOUR FIRST OFFER YOUR HIGHEST AND BEST OFFER - This actually goes without saying..... If you want the home, act like it! You may not have the opportunity to provide a counteroffer in the event that another Buyer's offer is accepted over yours. Do not automatically assume that the Seller will come back and make a call for "highest and best". This isn't ground in stone and if there's no call, your low-ball offer will probably be rejected and you'll lose the property.

 

* LISTEN TO YOUR AGENT* - You've contracted with your agent for a reason....USE THEM! They're traipsing in this market on a daily basis and have successfully navigated through several transactions that are similar to yours. They're trained to know the market and to be able to interpret the information relating to the market. They're going to be your main source of information, so don't be afraid to ask questions.....especially if there's something that you don't understand. Trust me, they want you to find your new home just as much as you want to find it.

Finding a new home does not have to be an arduous task....as long as you're equipped with the necessary tools to reach your goal!

Happy Home Hunting!!!

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Comment by Vanessa Calhoun on February 6, 2013 at 8:25pm

I do remember you, Sue! I'm glad that your short sale closed and you guys were able to move on with your lives! I'm just hoping that the market growth that were experiencing sustains itself! 

Comment by Sue on February 6, 2013 at 6:14pm

Vanessa;

I sent u a msg here umm i want to say about 2 and half yrs ago and i was asking u questions on the short sale we were going thru, wow am i ever glad that is over and we are very very happy in our home! Im Sue im in Arizona we are NW of Phoenix and i will tell u that the home values have gone up here like 23% and according to the news Phoenix is # 1 in the country for home values going up and when we started looking a couple of yrs ago, here in Surprise Az there were over 70,000 homes and now harldy anything even invsestors are being shy and not coming around cuz how the prices have gone up! If u have time check out what they have to say! Please let me know what u think! Even new construction and we still like looking at the new homes to get ideas! Hope to hear back from u soon! This site has sure changed lol i remember coming on here and i wasnt too sure if i should have been on here cuz it was only for agents but the ones that to remember me on here thanks for all the answers to the questions i had, i learned alot!

 

Comment by Adesoji Adewusi on February 6, 2013 at 6:03pm

Venessa...Thanks for sharing.

Comment by Anne McBride on February 6, 2013 at 2:31pm

In my professional opinion the properties here that are listed for $120,000 should be around $30-40,000.  No heating, thousands needed in repairs, it's an absolute nightmare!

Comment by Vanessa Calhoun on February 6, 2013 at 2:15pm

Wow!!! That's amazing to me. If we have a property listed in the eastern part of my county for even $120,000....it's a definite multiple offer situation!

Comment by Anne McBride on February 6, 2013 at 1:54pm

In Maine we have lots of property on the market many qualified buyers.  Here the issue is the buyers are getting qualified for under $130,000.  The properties in that price range have been trashed and the government backed loans will not support the purchase.  The investors will not buy them because the price is too high.  

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