Are You Experiencing Buyer Fatigue?
Are you feeling discouraged in your home-buying process? Have you lost out on multiple bidding wars and are feeling burnt out? Are you reluctant to continue your search and thinking of throwing in the towel? We’re here to tell you that you’re far from alone, and that many other aspiring buyers are feeling the same way.
What you’re experiencing is sometimes known as “Buyer Fatigue.” In the current “seller’s market,” buyers far outnumber the amount of homes for sale, which means supply can’t keep up with demand. Homes are selling very quickly, often following multiple offers that end up well above the asking price. This market is fast and aggressive, which many people find disheartening and exhausting. It can be tempting to consider giving up, and perhaps wait until things calm down a little. However, sticking it out, pushing through, and becoming a homeowner NOW is usually worth it in the long run!
Last year, a few of our buyer clients who had had enough of this crazy market decided to rent for a year and regroup. However this year, when their leases came up for renewal, they had a tough decision to make. Rent again for another year? Or start shopping for a home again?
Unfortunately, over the past year prices have only continued to rise — and now our clients’ buying power has depreciated even more. The same kind of home they were able to afford a year ago is now no longer within their means, and even if it is, it’s certainly not in the same location they had in mind the year prior. Add to this that they have just spent approximately $25,000 towards paying rent that could have gone towards their downpayment or mortgage payments.
If they had only acted more aggressively with their offers last year, they would have already built up a substantial amount of equity in their asset. So, pushing through in the market now can save you even more discouragement later on. Remember that your buying power today is stronger than it will be tomorrow — don’t give up! If you’re committed to becoming a homeowner, then don’t wait to buy real estate. Buy real estate… and wait.
Here are some tips that can help you succeed:
Broaden Your Search
In this market, knowing exactly what you’re looking for is vital. Of course it’s important to have a must-have list, but unless your budget is flexible, you’ll likely have to make a few compromises. Many clients we’ve worked with who initially had their sights set on buying a home in the West Island have had to adjust their expectations and begun to consider off-island neighbourhoods as well. Perhaps that two-car garage on your wish list gets downgraded to a single garage once the reality of the market begins to sink in. But once you come to terms with these compromises, you must become hyper-aware of the market and stay knowledgeable about any new homes that come up for sale. That’s where having a great real estate broker comes in. Team Broady can help you stay informed on your desired neighbourhood.
Act Quickly and Aggressively
Once you have found a home that fits your desired criteria — or at least most of them —it’s time to act. Today, homes are selling extremely quickly, sometimes within days of coming on the market. Let your broker know that you are interested and get your foot in the door. Take action; book an immediate visit and make a strong offer. If the house is updated in a sought-after neighbourhood, you will most likely have a short time frame to make a decision. Make sure your offer is attractive to the seller, especially if you’re competing against other buyers. This is not a time to negotiate on price, and you probably want to avoid any unnecessary conditions. Presenting a timely and aggressive offer will get you noticed by the seller, which is just the response you are looking for.
Another way of appealing to a seller is by creating connection. Was your childhood home located in the neighbourhood? Will your own children be attending a school that’s walking distance away? Make an appealing case for why this home holds meaning and value for you. A personal touch may positively impact your offer and win you your future home. Writing a detailed note to the seller or creating a video will allow them to see what joy they could be giving another family. There is no harm in appealing to the human in all of us.
Although this market can be frustrating, having an experienced and professional real estate team in your corner can mean the difference between success and repeated failure. Expert knowledge of the market, the neighbourhoods, and home values are essential to navigating this highly competitive landscape.
If you or someone you know could use some help or guidance with buying a home, don’t hesitate to call us at 514-613-2988 or write us an email at email@example.com to get started!