It's a jungle out there for buyers in this year's real estate market. Madison area home and condo listings are at historically low levels, and we fully expect this to be the "new normal" for the next several years. Consequently some buyers are struggling in 2018 because they don't have the right tools, the right mindset, or the right agent to effectively compete. If you're planning to buy this year, here are 4 steps you should take right now to effectively compete in our low inventory market.
4 steps for buying in a low inventory market
#1: Write down your goal and commit to it. For example, "By June 30th, purchase a 4-bedroom home for under $500,000 in the Middleton School District." Then re-visit your goal and work on it everyday. You're much more likely to achieve your goal when you write it down and make it a daily focus. Taking a casual approach to your home search won't get the job done in this year's market.
#2: Get clear on your "must haves" and your "nice to haves". Start by writing down all of the important home features that you cannot compromise. Then write down all of the features that would be nice to have but you can live without. Most buyers need to compromise one or two features in a low inventory market. Getting focused on your most important priorities will help you act decisively when it's time to write an offer.
#3: Educate yourself. Talk to one of our agents about the market for your price point and location. Then visit our buyers' blog and read our articles about budgeting for your purchase and writing a winning offer. Our team has a wealth of knowledge to share about what it takes to succeed in an ultra-competitive market.
#4): Hire the right buyer agent team. Interview three buyer agents. As you interview each agent, ask these questions:
- What do you do to help your clients find properties and get their offers accepted?
- What advice do you have for buyers in a low inventory market?
- Do you help buyers find unlisted properties?
- Can you guarantee a quick showing when a new listing becomes available?
- Will someone on the team be available when I need to write an immediate offer?
Be sure to ask each agent to provide specific examples based on their experience in the field.
Dan Miller, REALTOR
Mad City Dream Homes & RE/MAX Preferred