Real Estate: Finally, 2020 ends, but HOT real estate market continues

By Matt Trudel

2020 has been nothing less than challenging and stressful regardless of your profession.  New challenges, ever changing rules and restrictions, have certainly put all of to the test.  With all this going on and people being forced out of work, somehow the real estate market continues to grow and shows no sign of slowing down soon.  This seller’s market looks to continue well into 2021 and perhaps even further.   So, for buyers who want to purchase a home, there are many questions and challenges ahead as you consider making the plunge.  Here are some of those you will face and solutions to those issues ahead.

First question is whether or not to make that purchase of a new home now when the market values are increasing, and prices are high.  This is a personal decision for everyone but consider these things when making that decision.  Interest rates are at the lowest in the history of home buying.  With rates well below 3% it is almost like getting free money loaned to you.  This gives you more purchasing power so you can afford a little nicer home that maybe you won’t outgrow in 3 to 5 years.  Also, if you are thinking about waiting to see if prices come down, that might work in having a slightly lower purchase price, but interest will likely be higher meaning you will being paying more over the long term.  If anyone would like to sit down and have me show you how this works, I would be happy to do so.

You have decided to move forward and try to purchase your new home.  After selecting a Realtor,
Lender, and other professionals, the search is on and will be challenging.  Houses are absolutely flying off the market at record rates.  You will need your pre-approval letters ready, and get a showing set up as soon as the house hits the market.  If you don’t act quickly you will most likely find out the house is under contract.  Many buyers get frustrated as they put in offer after offer on homes and their offers are not accepted.  Here are a few tips to help give you a better chance of your offer being accepted and putting your new home under contract.

Purchase price is the obvious one where the highest offer wins out.  This is not always the case.  There are other things you can do and some of them can be done during or even before the showing to give your offer a bigger advantage.  Inspections and time frame for inspections are something sellers give serious consideration to when making a decision.  You can reduce the timeframe of your inspection period or even eliminate inspections if you inspect most of the house during your showing.  During or before the showing you can also pull a water test if that is a concern.  Your Realtor can help with this or you can hire an inspector to walk through while you are having your showing. 

Selecting a closing date and other terms around the closing are also things that sellers consider.  Your Realtor can call the listing agent an ask when and how the seller might prefer to close.  You can also make it comfortable for the seller moving by offering to allow them to maintain possession for 12 to 24 hours after the closing so they can have the movers come the day after the closing.  You will want to protect yourself with some sort of escrow agreement that your Realtor can help draft with the listing -agent.   There are several more ways to give you the competitive edge and for more information on those feel free to give me a call to discuss all of them.  

This article was written by Matthew Trudel, Owner of Five Star Realty, Windham, 207-939-6971. <