“Here we go again!”
We are beginning 2022 with less inventory than we had in the beginning of 2021. These numbers apply nationally as well as here in West Michigan. Because real estate sales are affected by supply and demand, that means we still have more buyers than sellers and we are in for another frenzy winter/early spring.
2022 Like 2021?
The feds are predicted to raise interest rates in the second quarter of 2022. As mortgage interest rates increase, buying power lessens. What this means to you is that if you are eligible to buy a $200,000 home and rates go up 1%, you can now only buy a home priced up to $170,000. So increases in mortgage interest rates will change buying power but does not change supply and demand.
Competing offers
Expect that when a home comes on the market and is priced right, there will be more than one buyer interested. For every multiple offer situation, only one person is buying the home and all the other who submitted an offer are still looking for a similar home. Lots of competition.
So how can I set myself apart from other buyers?
Strategies such as non contingent offer, waiving inspections or shortening inspection period, guaranteeing appraisal, escalation clauses, allowing possession after close, can be useful to secure the home for you. We have helped buyers implement these and more strategies to assist in obtaining the home in a bidding war.
Contact us
Contact us on our website tuckerbenner.com, or email tuckerbennerteam@gmail.com, with a call or text 231-730-8781 to see the ways we can help.
