As a homebuyer:
As a buyer, you are in a tricky place. The Eugene-Springfield marketplace is at historic 17-year record lows in home inventory or sales count. At the same time, this market is filled with opportunity. If you buy now, you’ll enjoy a strong price appreciation for the foreseeable future. And, an interest rate increase is imminent. There also are opportunities for the “buy-up” buyer in the current market because generally, the strongest “sellers’ market” has lower price points. So, sell your home in the strongest sellers’ market (to achieve a lower price point in many areas) and buy in a less intense sellers’ market.
As a buyer in this climate, the mindset is, “ready, fire, aim.” You must know your numbers and be prepared to make quick decisions when an opportunity presents itself. Visit with a lender in advance of shopping because most sellers will seek the buyer who can provide reputable, lender-backed evidence stating that the buyer can perform on their commitment, as named, in the offer.
This is not the market to ride solo. Realtors are an asset in your purchase. The right Realtor will review the property in defense of your resale and negotiate the offer process—even if there are multiple offers—in a way that maximizes your opportunity.
Be sure to be attentive to and realistic about your interest rate lock. There could be bottlenecks in the loan process (i.e. appraisal backlogs) that may require a 60-day interest lock over shorter term locks that can jeopardize your success in retaining that rate through close of escrow.
As a home seller:
As a seller, don’t get lazy about the presentation of your home when you put it on the market. The Eugene-Springfield market is fast and it has never been more true that you will never have a second chance to make a first impression. The internet accounts for 51 percent of all buyers who find the home that they eventually buy. The marketing photos must illustrate your home accurately and at its optimum condition. When the home hits the market, all the buyers who have been looking for their next home see it. These buyers are the most qualified, educated and motivated candidates in your marketplace. It is very likely that the buyer willing to pay the most for your home will view it within two weeks of it going on the market.
Sellers should also feel some urgency. We are sorely depleted in inventory. Buyers will pay a premium for an opportunity today. We do not know when the inventory will increase but when it does, the opportunities for homes available for sale will increase. Do not wait until spring when your flowers are blooming. Instead, list before your competition arrives on the market.
Second to the Internet, Realtors are excellent matchmakers. Realtors introduce 35 percent of buyers to the home that they eventually purchase. As you interview Realtors (and you should) to sell your home listen carefully to their plans and how they intend to reach the strongest and most vibrant marketplaces: the Internet and other Realtors.
Sellers, you have an amazing opportunity to optimize your sale, not just for price, but for the terms that provide you a foot-up on your next step (flexible possession dates, minimum repair/improvement conditions in your sale). It is essential that you consider the possibility that you may not succeed in synchronizing your sale and your purchase into a single move. Temporary housing and storage may be necessary. But by acting now, you secure your future as a buyer. You will be prepared when the perfect property hits the market by having money in your pocket and your home sale behind you; you will be an extremely attractive buyer in this competitive market.
Other opportunities:
Step-up buyers may see an advantage to selling now as the inventory at the lower price points is the leanest. Generally, as you go up in price, the availability of inventory and opportunity increases.
If you can’t find it, build it! The custom home building market is a great option if you are purchasing above $450,000. Our area has a strong pool of capable builders. Reach out to your builder (or your Realtor to help you find a builder) before choosing the land for your next home. They will assist you in staying in your budget by vetting the home/land opportunity with you.
Sell now, buy later. Selling now appears to have huge advantages during this hot market. But buying? Not so much. Do not feel pressed to purchase a new home immediately. By creating a “plan B” you make yourself a stronger buyer in the eyes of sellers. And, you will avoid the pressure of a quick purchase that can lead to over-compromising in your purchase of your next home. Make available some interim housing, such as a month-to-month rental home.