According to the Zillow’s Q2 2016 Market Report, U.S. homes are selling at an average of a week faster than they did a year ago. That means home shoppers should be prepared to move quickly in a competitive housing market.
The supply of homes for sale is almost 5 percent lower than it was a year ago, and 38 percent lower than its peak level in 2011. With fewer available options, home shoppers are moving quickly to buy homes, with the average U.S. home closing after 78 days on the market (and 64 days in Los Angeles).
Here, three tips from Inman to help homebuyers navigate a strong seller’s market:
1) Be prepared
Fill out pre-qualification forms completely and provide your lender with all of your important documents before looking for a home. You also should be ready to put down earnest money, with most agents requesting at least 1 percent of the purchase price of the house. If you need to borrow that amount, you should talk to your lender and follow directions on how to borrow that money so it won’t interfere with the loan.
2) Make sure to look at all of the costs
Talk to your lender about monthly payments and know what your total payment will look like using more than an online mortgage calculator. These often don’t include private mortgage insurance (PMI), and if you’re putting down less than 20 percent of the home’s value, your payment will include PMI. You also should consider what the payment looks like with property tax and HOA included.
3) Keep in mind that cosmetic changes can be made easily
Don’t be too picky about things that can be changed. In a tight market, you might lose the perfect house just because you don’t love certain aspects of a home. Consider asking the seller to pay for some of the closing costs so you can use that cash for a few upgrades before moving in, like new carpet, window blinds and bathroom faucets.