We are in the midst of a strong seller’s market, which presents some special challenges for those wishing to make a survival relocation. Demand and prices for rural property are high, but the availability has remained low, without relief in sight. Finding a home in the Redoubt and similar areas continues to be very challenging. As the Wall Street Journal described it in an April 3 article titled “The Housing Market Is Crazier Than It’s Been Since 2006“:
The past year has been the hottest for sales activity in 14 years. Home values are rising in practically every corner of the U.S., and median sale prices in dozens of metro areas have posted double-digit percentage increases from a year ago, according to Zillow Group Inc. In Boise, Idaho, the median sale price rose almost 25% in January from a year earlier, while in Stamford, Conn., it rose 19%.
Many families are currently finding themselves priced out of the market, and put their purchase plans on hold, hoping to wait out the market and hoping for a downturn. This suggests that the problem won’t go away soon.
Plan for Success
What can you do to succeed as a buyer in this market? Both listing and buyer’s agents are deluged with inquiries right now. Although they are doing all they can to meet this demands, prioritizing the number of buyers is very challenging. In this market, it’s necessary to aim to put yourself at the front of the queue by getting your “ducks in a row” and demonstrating that you are ready and willing to purchase when the right property comes along.
Get Your Financing Lined Up
If you’re not paying cash, talk with a mortgage broker today, and start figuring out where you stand. You may not need a loan pre-approval yet, but do request a pre-qualification letter to share with your agent. If you are planning on a cash purchase, consider liquidating any long-term assets now, and requesting a proof-of-funds letter from your bank.
If part of the purchase will be made with proceeds from the sale of another property, it’s important to get that property listed or sold as soon as possible. When a property owner is considering multiple offers, they are much more likely to accept a non-contingent offer than choose to wait 60 days on the expectation of your property sale to close first.
Clear the Runway
When properties are only on the market for days or weeks, and prices are changing monthly, there’s very little to be done until you have a clear timeline to making a purchase. When the timeline is defined, and you have a clear path to making a purchase in less than 2 months, you’re ready to start looking seriously. At this point, let your agent know that you’re ready, and request that they set you up for daily new listing alerts.
Clear up any roadblocks–whether it’s job changes, family situation, or other responsibilities in your current location. As much as possible, put yourself in a situation to be ready to purchase an move quickly. When the right property hits the market, you won’t want to have an unaddressed complication trip you up when you’ve finally secured the right property.
Upcoming
In the coming weeks, we’ll discuss specific strategies for searching for property in a low-inventory market,
