Ask a Realtor: Why should I buy in a ‘seller’s market’? (column)
July 6, 2018
Dear Joan: I feel like I am always "a day late and dollar short" when it comes to the residential real estate market. I wasn't able to buy when the prices were very good, and now that I can buy something, it seems like there is very little choice in my price range, and I will not get near as much for my money now.
I don't expect you to turn back the clock, but I would like some help justifying why I would buy now in a sellers market and get less house for more money? Thanks for any consoling thoughts you might be able to come up with.
— Current Buyer
Dear Current Buyer: I actually do not think you need consoling; I think you need to be congratulated for buying now. If you use a qualified, knowledgeable and diligent Realtor, then you still can make a great buy in today's market. Let me tell you why I say this.
First of all, you are exactly right that you cannot go back. Even though your hindsight is now perfect, it may have been too much of a financial burden at that time of your life.
Secondly, and I think the best reason for buying now, is the fact that building materials are starting to skyrocket (especially wood and steel), and I believe you are already starting to see the prices rise on new construction. If you buy an existing product that was built at an earlier time, rather than new construction, then you have the opportunity for a good savings.
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If you are buying new construction now, which so many buyers prefer, then you still may be early enough in the game to make an excellent purchase. At the moment, it appears that prices will only continue to increase.
Also, although we have some wonderfully skilled builders in our valley, I think we are starting so see more modular construction in certain price ranges, as there is economy in building products if you are buying in large quantities because you are building many homes simultaneously.
Modular homes are actually "stick built," but they are built offsite in a controlled environment and then they are trucked to the home site, often in multiple pieces, where they are put together on a foundation. The opportunity for new modular home projects, in the near future, may not only provide more choices, but as the home supply would rapidly increase, price increases on other homes may actually slow.
I think it is important that you explore all of your options with your Realtor, and since you are ready, I think it may be very important not to wait any longer. All the best.
Joan Harned is an owner and broker for Keller Williams Mountain Properties and heads up Team Black Bear, her own real estate team. Harned has been selling real estate in Eagle County for 27 years. Contact Harned with your real estate questions at email@example.com, 970-337-7777 or http://www.skiandteehomes.com.