The real estate market is booming right now but mainly for sellers. It’s a good time to sell your home but you may have a hard time purchasing a home.
Realtors say there are not enough houses on the market for the amount of buyers.
“The market is extremely hot,” said Kelly Williams Realty Associate Broker, Jeff Burke. “We’ve got a low inventory which pretty much creates a bidding war on almost practically every house. As long as it’s priced correctly.”
There are about 300 active home listings in the Greater Lansing area, but a typical market has about 1200.
Remax realtor Rob South says the pandemic played a role on the market.
“After the pandemic, we have seen the numbers have dropped significantly and I think that’s in large part that people are uncomfortable about selling right now. So they don’t want to sell,” said South.
Most of the homes that are for sale, are going for much more than their listing price.
“There are more people looking at fewer homes which drives the price up, it’s supply and demand,” said South.
Another reason why people are buying homes during this time is interest rates are very low.
“You’ve got historical low interest rates to where you can buy more house for low money,” said Burke.
Agents say in this current market, you need to bring your ‘A’ game, you have to be fast or you’re going to miss out and make sure it’s your best offer.
Some houses get offers between a few hours and a few days after being posted on the market, and some even get offers before being placed on the market.
“When a house hits a market you got to get in that day or the next day and you can’t really delay,” said Burke.
For interested sellers, South says it’s the best time to sell your home, but don’t overprice it.
“A good buyer’s agent is going to see right through that, yeah but this house isn’t really worth what they’re asking for it, and people aren’t going to bid on that house,” said South.
When putting an offer down for a home, South says you should know the difference between the listing price and the market value. He says buyers are not paying too much over the market value, when they pay over the listing price.
“Just because you’re paying 10 or even 20% over the listing price, doesn’t necessarily mean it’s not the market value of that home. It just means that you’re paying over the listing price.”
Burke’s advice for buyers, don’t get discouraged.
“I’m a firm believer, if the house is meant to be for you that’ll be your house.