The exponential growth of the U.S. housing market began during the pandemic, hitting its peak in July of 2021. Stimulus checks increased household incomes and mortgage rates dropped which resulted in a demand for houses. Indiana was no exception to the rising housing market. Big and small Indiana cities alike are struggling to keep up with the ever-increasing prices and demand. So what does this mean for you? We’ll break it down for you.
What does it mean for a seller?
As a seller, you are in the best position. People are having to pay over the listed price right now to even be considered…the demand for houses is that high. This is great for the seller because you are going to make a lot of money.
What does it mean for a buyer?
As a buyer, on the other hand, you will be in a tough position. This is a seller’s market which means they hold the power and you’ll need to be ready to go to war.
Here are a few tips to remember as you begin to navigate the seller’s market:
1. Be prepared to bid – In today’s market you need to expect to be bidding against many others, so make your first offer your best offer!
2. Be aware that the home may appraise under your bid – The number of homes for sale is so low that they are going over their appraised value. You need to be prepared for your lender not to offer a loan over the appraised price. Make sure you have extra money set aside to cover the difference there.
3. No counter offers – Don’t expect to receive a counter offer or make a counter offer. The buyers will have plenty of great offers to pick from!
4. Make the seller’s experience easier – The buyers may appreciate your willingness to waive the inspection or being flexible with your move-in date.
5. Appeal to the buyer with a letter or video – Not all buyers are solely money-motivated, they may end up connecting to a buyer’s story. You can let them know how important the home is to you by including a hand-written letter in your offer or a video explaining the “why.” Most buyers will want a nice family or couple moving into their home to continue making special memories there.
What does it mean for a happy homeowner?
If you’re happy where you are, our advice is to stay there! Continue building value in your home through curb appeal and indoor projects. Be thankful you have a beautiful, safe home to live in when it’s so hard for many to find one.
Where are you in your real estate journey?
Whether you are ready to sell your home or find your dream house, we are here to help you! Please give us a call today at 574-527-1700 or email us at Kim@homeswarsaw.com so we can help you find a place to call home!