April 2018

Buyer do’s and don’ts for 2018

The U.S. housing market can be notoriously difficult to predict. Whether you find yourself looking in a buyer's or seller's market depends on many factors. The national economy, where you intend to buy and demographic trends like the impact of millennial homebuyers all affect the housing market.

According to Realtor.org, home sales are expected to go up this year, but housing inventory is also expected to remain tight.1 This means buyers could face a challenging market for 2018.

But remember, whichever way the market winds decide to blow, here are some do's and don'ts for buyers in different markets.

SELLER'S MARKET

DO move quickly.
With all the competition from other buyers, you need to be ready to make an offer right away on a home you like. You may want to get prequalified for a loan so sellers know you're serious about purchasing.

DO keep a positive outlook.
There's a good chance you may not land the first home you make an offer on, but that's okay. Consider which items on your dream home list might be worth compromising as you move on to your next offer.

DON'T underbid or push for extras.
In a seller's market, buyers don't have as much leverage to request favors, or "allowances," that would be included in the final deal, so make sure you can afford the home's asking price at minimum.

BUYER'S MARKET

DO negotiate.
You have more leverage in this market. Use it to ask for a lower price or request that the seller make renovations or upgrades before you sign on the dotted line.

DO your homework.
Take the time to learn as much as you can about price ranges in your desired market. Compare how much homes sold for to their original asking price to help inform your offer strategy.

DON'T expect the moon.
A buyer's market isn't an automatic guarantee that you'll get everything you ask for. Be prepared to compromise while staying focused on your goal: to get a home you want at the lowest price you can.

Remember, your real estate professional is an important ally as you pursue your home buying goals. The more they know what you're looking for, the better equipped they are to help. Talk to them about a strategy that could work best for you and your situation.

The most important thing to keep in mind about the housing market is that it can change quickly. Bank of America offers a wide range of resources and loans to help you achieve your goals in any market, at any time of year. Contact me with any questions about the financing process as well as what types of loans you may qualify for.

Top buyer's and seller's markets by state

 

Top seller's markets

1. Colorado

2. Nevada

3. Minnesota

Source:
CoreLogic®, Dec 2017

Top buyer's markets

1. Connecticut

2. Oregon

3. Vermont

Source:
CoreLogic®, Dec 2017

 

Source:
1"Existing-Home Sales to Grow 3.7 Percent in 2018, but Inventory Shortages and Tax Reform Effects Loom," Realtor.org

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