There is a shortage of available inventory in many regions. Supply is not matching demand. This develops an interesting experience for both buyers and sellers. Here is how the Grand Rapids Michigan inventory shortage affects real estate consumers.
A Competitive Buyer Environment
Low inventory fosters more competition for prospective buyers. Any new listings will naturally generate a lot of activity. Listings will go under contract quickly and possibly with several offers. Under these circumstances, expect homes to require greater than asking price. What should buyers understand?
Buyers must be ready to act. A pre-approval is generally necessary to do so. After visiting a property, buyers must not procrastinate making a decision. Waiting even one day could be too late. Finally, when presenting an offer, it is beneficial to submit a uncomplicated one and put your best foot forward. Sometimes you have just one chance. There is not much chance to negotiate a reduced price unless the home has been marketed for an unusually long time and without competing bids.
A Good Position for Home Sellers
Sellers benefit in this type of real estate market. With most sellers, it is painful keeping a property in showing condition for an extended time. Quick contracts result in less work for sellers. In bidding instances, sellers are also in a position of strength and may have their choice of buyers.
Sellers must be conscious not to overprice in this market. Highest value is usually achieved from starting at the appropriate point. Overpricing will not normally end well.
Those attempting to both sell and buy may struggle a bit. Even though you might be able to promptly locate a buyer for your current property, it may take more time to find one to purchase given the lack of inventory. You may want to accept an offer from someone with a flexible time frame or use temporary housing until you can locate your new home.
How The Grand Rapids Michigan Inventory Shortage Affects Real Estate Consumers
In general, how the Grand Rapids Michigan inventory shortage affects real estate consumers is the typically shorter selling time but a possibly extended buying time frame. Prices will also be greater. It is important to remain educated on the Grand Rapids Michigan market if you are attempting to buy or sell. Also set reasonable goals when it comes to both price and timing. Working with a local agent will help you better understand the process. If you have any questions, or if you are considering buying or selling a home, feel free to call me at 616-949-1004