Back in the spring of 2017, I wrote a blog on how the market at that time was a seller’s market. (Click here to read that post) We were seeing homes in our area get listed and within 24 hours, there was a line out the door for showings and multiple offers in hand. Today, that doesn’t quite read so true…
With inventory climbing, homes in our area are seeing their days on market (DOM) climb to unusual heights. For example, right now in Hoboken we are seeing roughly 260 homes on the market with an average DOM around 49. We are also seeing multiple price reductions as inventory continues to linger on the market with minimal showings to all active sellers.
Buyers need to be equipped with the proper tools in order to enter the housing market, and make a sound financial decision on their next purchase. I’m going to mirror a few points from my 2017 post but also share a few more tips:
- Get Pre-Approved – Finding out how much you can afford is the first step you should take in home buying, period. Walking around without a pre-approval is simply just a waste of time. In our area, working with a local lender is key as most of the big banks are frowned upon by sellers due to the complications that can arise from condo questionnaires.
- Work With A Knowledgeable Realtor – A lot of buyers tend to think that going from one open house to another is the best way to do it. The reality is that they are spreading their contact information all over the place and getting hounded by agents to vie for their business. Find an agent that you feel is a good fit with your personality and let them do the work finding the homes. That’s what we do!
- Know Your Market – Set aside some time to understand the true home values. Today, a lot of sellers are still living in the 2017 market and think their home is worth more than its asking price. When narrowing down your choice of a home to make an offer, find out the comps and look to see how this seller arrived at their asking price. If your analysis is different from the seller’s asking price, ask for any comps that you may have missed. Once you have the information in hand, offer away and let your agent do the negotiations for you!