It’s springtime in 2018, and the housing market in Chicago is strong. Make no mistake about it, we are in a seller’s market. Housing inventory is low, and prices are on the rise.
If you’re a home buyer in today’s market, what does that mean for you?
It means you’ll want to know 103 Realty’s 4 key steps on the roadmap to buying a home in 2018. You don’t want to start your search without these!
It doesn’t matter if we’re in a seller’s market or a buyer’s market, you always want to talk with a lender before starting your home search. Your lender will help you understand your financial situation. IE – how much you can afford, an estimated monthly payment, and if you have any credit issues.
Once you’ve talked with a lender and filled out an online loan application, your lender may ask for additional documents (W2’s, paystubs etc). Upon receiving those documents, your lender can now issue a mortgage pre approval letter! This is very important to have before looking for homes.
For more questions on financing, click here.
2. Act Quickly!
Once you’ve received your mortgage pre-approval letter, you’re now ready to look at homes.
But this means you have to be ready to act quickly! If a hot home hits the market, and you like what you see, don’t wait until the weekend to see it. Talk to you 103 Realty agent and get out to see it ASAP before it’s gone. Remember, inventory is low, and other buyers are actively looking, just like you.
If you see a home you like, be prepared to put an offer in that same day. If not, you could lose out on the home or get outbid by another party. I’ve seen too many buyers find their dream home and want to “sleep on it”, only to lose the house to someone else that liked it. Or wait too long and get in a bidding bar (more info on this later).
We’re in a seller’s market, which means there are not many homes available for sale. Less homes for sale means more competition amongst buyers. If you’re pre approved and you act quickly, you’ll show a seller you want their home and they’ll be more likely to consider your offer.
3. Don’t Always Offer Low
Now that you’re pre approved, you found a home you love and you’re ready to act quick. The next question usually is – how much should you offer?
This depends on a number of factors. For example: Is the home priced to sell? How long has it been on the market? Is there other inventory on the market for sale in this area? Is the home updated and move in ready?
If it’s an older home that has been on the market for 6 months, you may have some wiggle room on the price.
If the home just hit the market, and it’s in a hot area, you won’t have as much wiggle room, if any at all!
Your 103 Realty agent can help you to determine if the home is priced right. But keep in mind, that we are still in a seller’s market. If a new, updated home just hits the market and it’s priced reasonably, then the sellers probably won’t be looking to take much off the price. In fact, they might get multiple offers on the property!
4. Navigating Multiple Offers
Now you’ve made your offer, but you just found out there are other offers on the property and you’re now in a multiple offer situation. What to do next?
Here are some FAQ that I usually get from home buyers, on multiple offer situations:
Q: Do we know how many others there may be?
A: Unfortunately, you won’t know how many others you’re up against. It could just be one more or 5 more.
Q: Do you know what the other buyers offered?
A: We do not know what the other offers are.
Q: How much should we offer?
A: There is no right or wrong answer to this question. This goes back to the last section in the blog – how long has it been on the market, is it priced right, updated, etc. The one thing I always tell buyers is, don’t be afraid to go for it if you want it. Many times in multiple offer situations, homes end up selling for more than list price.
Q: What are the next steps in a multiple offer situation
A: Most of the time, the sellers will ask for all of the interested parties to bring their “highest and best” offer by a certain deadline. The seller will then review all offers and make a final decision.
In summary, most Algonquin homes, Lake in the Hills homes, and Huntley homes are in a seller’s market. Same goes for most surrounding areas. We’re seeing homes sell in just days or weeks, and sometimes with multiple offers. It’s a stressful time to be a home buyer, especially if you don’t have a good realtor working with you!
There has never been a better time to partner with a realtor from 103 Realty to help you through the home buying process. As stressful and as daunting as it can be, we’ll help guide you through every step and get you in your next home.
Contact Pat Kalamatas at 103 Realty via phone at (312) 880-7862 or email email@example.com