|By Marketwired .||
|August 16, 2013 06:00 AM EDT||
SANTA ANA, CA -- (Marketwired) -- 08/16/13 -- As housing markets across the country begin to pick up pace, competition for homes has really heated up. As if the process of buying a home wasn't already enough of an emotional rollercoaster, now many buyers are faced with fierce competition in multiple offer scenarios.
The pressure associated with securing the homes they want has lead to buyers taking some pretty drastic measures. A survey released on July 25th by Trulia revealed the extent to which people are willing to go to buy a home in today's competitive market. Citing the possibility of higher mortgage rates and housing prices among their chief concerns, households earning more than $100,000 a year were more likely to offer to pay the seller's closing costs or bid above asking, whereas lower-income households making less than $50,000 a year were more likely to borrow money from family or friends to put down 20 percent or make an all-cash offer.
It's fairly obvious that buying a home has become somewhat of a no holds barred competition. But just because this is what most buyers appear to be doing doesn't mean you have to follow the pack. Buying in a fast-paced market doesn't mean you have to make snap decisions or allow stress to dictate your behavior.
"Buying in a hot market can be frustrating for consumers, particularly those who have become emotionally invested in a particular property that multiple buyers are interested in," said Wendy Forsythe, executive vice president and head of global operations for Carrington Real Estate Services, a full-service real estate brokerage operating in more than 25 states. "A good agent empathizes with the emotional stress of falling in love with a home and having to face the possibility that it inevitably might go to someone else."
Understanding the pressures that today's homebuyers can feel when faced with low inventory and rising prices, Carrington Real Estate Services agents use simple but proven tactics to help buyers lessen the stress, make the right moves, and avoid overpaying. The following are some of the company's proven stress busters for today's homebuyers:
Understand the nature of the market. Analyzing market trends and statistical data is key in helping you prepare for the home buying process and managing your expectations. Your real estate agent will have access to local analysis including Median Price, List-to-Sales Price, Days on Market, and market activity that can impact your decisions and make you feel more confident throughout your home search and purchase.
Lengthen your timeline. Give yourself some breathing room. When you're ready to buy a home, it's the right time to buy a home. You don't have to rush into choosing a home that isn't everything you want and need. Many experts are predicting a brighter picture with regard to home inventory. CoreLogic has projected that 2013 will end with a 6 percent increase in property inventory compared to 2012. As the housing recovery continues, more sellers are coming off the sidelines and that means some relief for homebuyers who have been faced with the recent feeding frenzy.
Maintain a competitive position. Boost your buying power and be ready to submit your best offer. Reserve some cash to help give you an advantage in a bidding war on an attractive home. But understand that a house is worth what someone is willing to pay for it. Where some buyers have more leverage to increase their offer, you might feel you're overpaying. If you've been outbid, don't feel pressured to overextend your finances or risk suffering homebuyer's remorse.
Consider some level of compromise. The neighborhood you've been looking at might not be realistic anymore, but you can find value in others. One way to do this is by looking at homes in the mid-range: not the gorgeous, completely remodeled homes, and not the homes in need of rehab either, but rather the homes that might not have immediate curb appeal but have "good bones." Shift gears so you aren't chasing the most desirable homes, which is where all the competition is focused. Instead, take a closer look at other viable options.
There's really no way around the fact that buying a home is a major decision that often generates a lot of emotion and pressure. After all, a home purchase is one of the most significant financial transactions a person will ever undertake. By taking your time, doing your research and partnering with the right agent -- you'll be able to focus on what really matters: getting yourself into the right home for you, your family and your own unique needs.