Is the Buyer’s Market slowing down or are they just playing hard to get?
People are smart and it doesn’t take long before they catch on. The pandemic certainly pushed the real estate market into overdrive causing lines at an open house like it was Black Friday at Target.
But times are changing
Buyers no longer want to be a part of the bidding wars and frankly the minute an agent mentions there may be multiple offers, they fold. Agents were frustrated as well when they knew the home wasn’t worth what the seller was asking and had a difficult time explaining to the buyer who was “In Love” with the home that this was not a smart financial decision. Losing time and time again created frustration in what is supposed to be an exciting and joyful time.
Some experienced agents lost buyers that pushed to make offers $30,000 over what the home value was because some of us aren’t just looking at this as a short-term gig. It’s a career and one we take pride in.
Our main job is to save our clients money and to provide them with every resource to make a smart financial decision. Making ridiculous offers over the list price is not a decision an experienced Realtor wants to be a part of.
Believe it or not, a Great Realtor wants you to call them in 5 years when you are ready to sell and not have to tell you that you are going to have to pay to get out of this mess. They want to tell you that you made money because of the investment and now it’s time to Level Up.
While the enthusiasm has faded to “Out-Bid” other buyers, there are still plenty of savvy buyers looking to buy. They are informed and armed with a trusted agent by their side.
The rental market increased to a whopping 100% due to so many people changing jobs and rental prices going up astronomically. In March 2021, we saw rental prices double and many were left without an income increase to cover it.
I had a Veteran call to tell me his rent had increased from $650 to $1250 and he couldn’t pay it. Thankfully the VA offers an entitlement program for approved veterans to get approved with no money out of pocket and he was able to get into his own home for about the same as his previous rent. Whew…. this was a close one.
But many people look blindly without a Realtor believing the old tales that you don’t need a Realtor. Well, I am here to tell you that, you definitely do. Realtors have partnerships with lenders that offer different programs to help, not one size fits all. Each lender has different options so it’s important to find the one that best fits your personal needs and that is just the beginning.
Fall is a great time to buy because the taxes are coming up and those who had their home on the market all summer are finally realizing the buyers are on to them. Homes that were overpriced are more likely to take a lower offer in October, November, and December. So look for homes that have been on the market for more than 100 days. Meet with a trusted Realtor and create a strategic plan. This is one of the largest purchases you will ever make so don’t just wing it.
Realtors have a watch list, the ones we know are overpriced and will definitely come down. Make the appointment to go over your wish list, get the financial documents started and be ready to strike when the right property becomes available.
Fall prediction is we will see a slight increase in mortgage rates, probably 3.5% by mid-fall, and a slight increase in the inventory as we approach the later part of 2021. But I don’t anticipate a full switch in the housing market to favor the buyer until sometime in 2022.
While the real estate market is still coming in hot, our local conditions vary and will continue to do so depending on the area. If you’re planning to buy or sell a property this year or 2022, make an appointment with a trusted agent at Big Fish Real Estate in your area and learn more about local trends, city planning, and how to make an informed purchasing decision.
This ain’t your Momma’s Real Estate Market
I hope you enjoy this post; I truly believe it is my responsibility to educate the public on how this process works. Hiring a trusted agent doesn’t cost you money, it honestly saves you money, time, safety and so much more. If you have questions about why to hire a Realtor or just need a referral for anything housing related please don’t hesitate to call me.
Tina Coombs
Broker /Owner of Big Fish Real Estate Services, LLC
1651 North Monroe Street
Tallahassee, Florida 32303
850-339-9276
