Military Moves in a Seller’s Market
Active duty service members are more exposed than others to the cyclical swings and vagaries of the real estate market in Emerald Isle, NC, since they often have little control over when their moves happen. And, in today's blog, I highlight some advice I've passed on to my active duty service buyers. Much of the same advice applies to my civilian clients so read on!!
It’s often said that only three things matter in Emerald Isle real estate: location, location and location. That’s not entirely true—timing can also make a huge difference in amount of inventory available on the market and inventory can have a huge impact on prices.
Take, for example, when real estate in Emerald Isle is in a “seller’s market” like it is now, there’s more demand for houses than there is supply. That results in higher prices and a tougher time finding a house that meets your desired specifications. A seller’s market is a great condition if you’re selling, but a tough one if you’re buying. But, no matter which side of the market you’re on, I'’ve got pointers to help you make the best of the situation.
Tips for Buyers
Hire a pro. If you do choose to pursue a purchase in a seller’s market, the selection of a your real estate agent carries extra significance. You’re already starting from a position of relative weakness, what with fewer homes to look at, it’s critical that your agent is highly competent and able to provide precision advice on pricing and strategy. You are going to want to hire a LOCAL agent who understands not only your special circumstances but also who monitors the market inventory daily so choose wisely.
Get a pre-approval. Getting pre-approved for a mortgage is highly recommended in any market, but it’s an absolute must in a seller’s market. Imagine you’re a seller, and you receive two roughly identical bids. One has a financing pre-approval attached to it, the other doesn’t. Which one would you accept?
Don’t delay. With a busy weekday schedule, you may be inclined to save your home research for the weekend. In a seller’s market, that’s a recipe for failure. The early bird gets the worm, so quickly get to showings and be mentally prepared to make fast decisions.
Your offer must reflect the market reality. Maybe you’re used to driving a hard bargain in home purchases, auto dealerships and garage sales—but now’s not the time to be brazen. In a strong seller’s market, your offer price may need be very close to the asking price, and in some cases, maybe even above it.
Beggars can’t be choosers. The same warning about lowball prices applies to making demands, contingencies and putting conditions on your offer—like asking the seller to throw in new appliances or demanding that the seller make every repair on the home inspection report. Don’t do it.
Get ready to duel. In some seller’s markets, bidding wars are common. If multiple bids come in quickly, you may soon find yourself in a situation that feels more like an auction than a normal residential real estate transaction. When targeting homes to consider, factor in the possibility that the asking prices may be below what those properties will ultimately go for. And as you prepare your initial offer on a house, think ahead to how much higher you’re willing to go. That’s not to say your first offer should leave a lot of haggling room—it should be very close to your best possible offer.
Put more earnest money on the table. Earnest money is a deposit at the time of an offer that demonstrates a buyer’s seriousness about moving ahead with the deal. If things proceed as planned, it’s applied to the purchase price at closing. A common amount is one percent of the offer price. You may want to offer more.
Be flexible on your move-in date. While the norm is for the seller to be moved out on the day of closing, your offer may be better received if you’re willing to give the seller a little extra time. Staying an extra day or two in a motel may be the ticket to whether you close on the house or not.
Consider your alternatives. If the market’s pricey and supply is low, some buyers may consider the possibility that buying may not be the best choice, right now. Service members have an ace in the hole—the option to live in government-provided quarters. In a tight market, however, on-post or on-base housing may also be in short supply. Whether active duty or civilian, waiting is not always the best decision. Mortgage rates can go up. The market can get hotter. The inventory may be reduced. And, so on.
Tips for Sellers
Don’t get cocky. Don’t let seller’s market confidence lead you to think you can cut corners. It’s still important to spruce up your home inside and out, and consider having your home professionally staged.
Lure buyers with an attractive asking price. Particularly in a market where bidding wars are common, setting an initial price that’s slightly below the market rate may draw much more interest—and you may come out at above the market price anyway with an auction-style bidding war. .
Put a tighter limit on showings. In a buyer’s market, it would make sense to be as accommodating as possible, letting agents show your home any time of day or night. In a seller’s market, however, you may want to chum the waters by playing a little hard to get: Restricting the available hours can lead to multiple buyers strolling the house simultaneously. With possible bidding rivals right in view, their competitive spirit may be heightened—and their offer prices along with it.
There is one unique dynamic to second home vacation markets like Emerald Isle that I haven't touched on and it applies to both buyers and sellers, especially in a low inventory market. There is more than one beach town. IF Emerald Isle doesn't have the inventory, or if sellers are not reasonable, buyers will simply move on to the next town up or down the coast.
When you are ready to move to Emerald Isle, or the Crystal Coast of North Carolina, contact me by voice or text @ 919-308-2292 or by email at: DRaczkowski@fathomrealty.com and request a chapter of my book, "Live Where You Vacation."
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