The Sun Valley area spring real estate market is booming. With limited inventory, buyers are willing to pay over the asking price and fight for the home they are bidding on. They are motivated by shockingly-low mortgage rates and a need for more space. Explore a few tips on how you can win the bidding wars and secure the perfect house for your family.
5 Ways to Get the Home You Love
The name of the game to buying a home in 2021 is competition. The inventory is lower than ever, and buyers are ready to pounce on each house that goes on the market.
Take a look at these tips for buying the home you love in 2021:
1. Get Familiar with the Market
Compare listing prices with what they actually sold for so that you can plan for how competitive you need to get. Take a look at different parts of the neighborhood and identify the areas that may be overlooked among the hot spots. Ignore the outliers that sell for extraordinarily low or high. Take a snapshot based on the majority of sold homes.
Remember that any future development plans may affect the appreciation of a home. Learn about any apartments, businesses, or highways being built nearby that could affect your home’s value.
2. Plan to Pay Over Asking
When you prepare yourself to pay over the asking price, the bidding war will be expected rather than a disappointment. You can set a personal limit of how much you will pay for each house. Instead of getting caught up in a bidding war, walk away at your pre-decided price. Other homes will come on the market. You don’t want to inflate the price of the house because you were so set on winning.
And remember, just because you pay over listing price doesn’t mean you are overpaying for your home. This is the nature of the market and is necessary to secure homes right now.
3. Offer Concessions Instead of Asking for Them
The power is in the seller’s hands when it comes to concessions. Many offers are coming with concessions, including all-cash offers and skipping the appraisal. For inspections, you can offer a cap on what you will ask for repairs. This will show the seller that you don’t plan to get money back in concessions.
4. Learn about Appraisals and Make Your Own Estimates
Price per square foot is a starting point when it comes to appraisals. If a 30-year-old home has been completely renovated, then it will go for much higher. I can provide you with homes in the neighborhood to use as comps for your property. But remember to plan on paying above the comps in this market.
Also, consider homes that may have undesirable features to other buyers, like being on a busy street or a small backyard. If some amenities don’t matter to you, those homes can be less competitive to buy.
5. Get Pre-Approved for Over the Listing Price
When searching the market for homes that you would like to buy, be sure to get pre-approved for much higher than the listing prices. A seller will not choose you if you are pre-approved for $500,000, but you are bidding $550,000. Be sure that the lender pre-approves you for the max that you can afford. This will give you flexibility in bidding wars.
Now is the time to get the home of your dreams. For questions about the real estate market in the gorgeous Sun Valley, contact Kirsten DeHart. At Wood River Properties, we can help you navigate the luxury real estate world. Call us today to set up your first appointment: (208) 721-4131.