The Home Search: Finding Successful Balance in this Emotional Roller Coaster

Many people who have been looking to buy a home have been dismayed especially if their heart is set on Lane County’s $300,000, and below, sweet spot. Not only has there been record-low listings on the market, more and more buyers are entering it.

While the price that is offered on a listing is important, buyers may be surprised to learn that savvy sellers and their real estate brokers consider much more than price when sifting through an array of offers. Here’s how buyers can remain competitive, while attempting to stay sane, in a crazy marketplace:

Court the Seller

Knowing that they have a fighting chance is likely the first part of staying sane for buyers. Putting their best foot forward through the offer that is written on the home increases the odds. Beyond the offering price, buyers need to consider other sticking points in the offer, such as the terms, inspection details, timelines and more. They should examine everything from the seller’s point-of-view, working within the seller’s interests too.

Write a Clean Offer

A big part of writing a winning offer falls into the financing arena. Many buyers may need to get creative with the financing, such as obtaining FHA loans or wrapping in the closing costs. While convenient for those who need cash to pay closing costs, adding such costs to the financing increases the loan price, possibly making it harder for the home to meet the bank’s appraisal price. In a competitive market we advise our buyers to avoid these strategies so they are submitting the cleanest offers possible. This means not asking for items that go above and beyond an appropriate price.

Misconception Around Appraisals

Appraisals can get tricky in a market where the houses are going for five to ten percent over asking price. We aren’t seeing this yet in Lane County. The multiple offers we’re receiving are typically a few thousand dollars over asking price.

But let’s say we are dealing with these high offers. Many buyers think that if the house doesn’t appraise (which means the buyers don’t get their loan), they’ve offered too much for the house. In most cases this isn’t true. The appraisal process simply hasn’t had time to catch up to the market. The market in general sets the value of any home, with appraisals typically lagging behind the market. If a home sells for much higher than other properties in the area, it will increase the value of the other properties, but it takes the bank’s appraisal process time to digest this.

Slow down in a fast market?

Its been said that buyers who are uncomfortable with the frenzied pace of the market just need to slow down. Solid advice but hard to do. Slowing down in this market can mean the loss of an ideal home. Much like in any sport, competitors must match the pace of the other players to have a fighting chance. However, buyers could have the luxury of slowing down if they obtain the right real estate counsel. Getting into temporary housing at month-to-month commitments can also help buyers remain selective during their home search so they aren’t forced to settle.

Let Go of Emotion

The emotional piece of buying a home presents another conundrum. How do buyers set emotion aside when residential real estate, especially for primary residences, is inherently emotional? Most people spend the majority of their time in their primary residences.

It’s impossible to be void of emotions when it comes to where we find solace, comfort and community. The key is managing those emotions. This type of emotional management comes with the help of good real estate counsel that assists buyers in identifying their wants and needs — and then most importantly guides them in understanding the difference between these two. Sleepless nights, incessant arguing and upset stomachs can be avoided when buyers work with these professionals to structure a solid game plan they diligently stick to. A good support system that arms buyers with financing, inspection and escrow connections can also help buyers sidestep tedious roadblocks.

Although real estate can be stressful, and some days even heartbreaking, I hope that Lane County buyers will try to enjoy this whirlwind of a process. Most buyers will only get to experience the exciting high’s and low’s that the market brings only a few times in their lives. If buyers understand they are in a fortunate position to have the means to buy a home — many people can only dream of this — it may be just what they need to march forward toward happy homeownership.

By, Matt R. Powell, Owner & General Manager