Let’s begin the new year with a success story that started one year ago.
My clients, Brian and Brandon, have been renting an apartment for the past five years. Every month they put money aside to save for the down payment to buy and own a home.
2021 was supposed to be the year.
Buying in a Competitive Seller’s Market
When Brian and Brandon started house hunting a year ago the listing inventory has plummeted to record lows. Many eager buyers were crowding the market.
Despite of the pandemic open houses attracted hundreds of visitors and most new listings received more than 10 offers – many above list price.
The 2021 housing market was super competitive.
Cash buyers were willing to go 10% or even 15% above list price with no appraisal contingency
To avoid bidding wars on existing listings, I suggested they look for a builder’s inventory home. No luck there – even this market was extremely competitive.
So, they decided to build new.
Build New and Avoid the Competition
Although they would have to wait for 10 months before they could move in, Brian and Brandon could pay the builder’s list price and avoid competing against other buyers.
With home values and construction costs quickly rising I suggested they lock in the purchase price and watch the value appreciate while their new home was being built.
Purchase Contract Signed Before Builder Increases Price, Equity Gained
On February 28, 2021, they signed a purchase contract – a day before the builder raised the base price by $10,000.
It took 10 months to build their new home. There were a few delays due to supply chain issues and the labor shortage.
Their new house was completed just before Christmas, and we closed on December 21, 2021.
Best of all, on the day they moved their new home was already worth $50,000 more than similar homes being built in the neighborhood.
New Year’s Recommendations for Buyers
If 2022 is YOUR year to buy a house I suggest you call me immediately.
Let me help you design a home buying strategy to beat the competition and get your perfect house at an affordable price.
In January 2022 the inventory is exactly as low as in 2021.
Many would-be buyers who could not find a home in 2021 extended their lease for another year. They are house hunting NOW to avoid the spring buying boom and rising interest rates
Case in point: I submitted an offer on a Hilliard listing on New Year’s Eve. They already had 3 other offers above list price.
Don’t Wait if You Are Planning on Buying this Year!
Call or Text me TODAY at (614) 975-9650!