If you are looking to buy a home in the near future, you will find you’re a up for a challenge here in central Indiana. The past 2 years we have seen the strongest ‘Sellers’ Market’ in years. What does that mean to you? Basically, there or more buyers than there are homes for sale. So, sellers have the upper hand as in most cases if priced right, homes sell in less than a day, often with multiple offers. As a buyer, that is what you are up against, several other buyers whom are looking to buy the same home you want.
What’s a buyer to do? Well first you must make sure you have an experienced agent representing you. The key in a multiple offer situation is making sure and writing a ‘strong’ & ‘clean’ offer. The ‘strong’ part is having your financing well in hand with a good prequalification letter from your lender. The ‘clean’ part is limiting the contingencies in the contract and understanding that the seller is going to be mostly interested in their ‘net’. There are a few tricks to make sure that’s how your offer works out and that’s what The Derrick Team is good at. Last year all our buyers were able to purchase homes they loved in this competitive market.
And what’s a seller to do that wants to buy after they sell their current home? Well that can get a bit tricky but there are some options. First if you have enough equity in your current home and great credit some lenders offer what amounts to a ‘bridge’ loan. There are different names for this but basically you use the equity to get a loan to purchase a home first, then sell your home after you move out and use those proceeds to then get a permanent mortgage on your new home. The advantage is you don’t have to scramble to find a home when your current home sells in one day.
If that isn’t an option, we always recommend a ‘plan b’ for our sellers. Find some sort of temporary housing arraignment after you close on your current home, such as short-term rentals or staying with friends or family. The idea is if you cannot find a home quickly after the sale of your home you don’t want to have to rush buying your next home and maybe settle for something that you’ll regret later. We did have sellers that managed to find a home and close on both the current and new homes at the same time last year, but it’s difficult to do in this market.
Just getting ready to sell or buy? Feel free to call The Derrick Team for a no obligation meeting to go over your options in today’s challenging market at 317-563-1110.