You’ve likely heard the term a “Buyers’ Market” and “Sellers’ Market” as it relates to real estate. This indicates which party has the upperhand in a real estate transaction. When home sales are slow and there are plenty of listings, it’s a buyer’s market. In a seller’s market, inventory is tight, negotiating sellers concessions is difficult and buyers can even enter bidding wars, pushing up the price further. In our market, the advantage is on the seller’s side due to the lack of inventory. However, buyers have a few techniques to beat the housing shortage.
How to Beat the Housing Shortage: New Construction
Second-Time and Move-Up Buyers
Sellers also become buyers when they sell their home and buy a new one, so they will experience the very same market conditions. That means homeowners who are thinking of selling may be reluctant, fearing they won’t be able to beat the housing shortage when they’re ready to buy. That’s when sellers need to look to new construction. Taking advantage of the new housing inventory hitting the market now is one of the best secrets to beat the housing shortage. Instead of looking for existing homes you can see what’s on the new construction horizon.
Shorter Waiting Period
One of the concerns when buying a new construction is how long it takes to build the new home from the ground up. Depending on the size of the home, materials and amenities, it can take six to twelve months to complete a new home. But builders are constantly building homes and waiting on a buyer to make an offer. Many of these homes are already almost finished and all that’s needed is for buyers to customize the home. This means there’s no twelve month waiting period. In many cases the deal takes no longer than a standard 30 day escrow period, which makes a new construction as fast or even faster method to beat the housing shortage than an already built home.
Buyers of new homes can customize the property with granite kitchen countertops, matching stainless appliances, custom lighting, wood flooring and much more. In the master bath, radiant floor heating can be installed. The list of upgrades is almost endless, allowing the buyers to make the new home truly theirs. A new home is built with the latest in construction techniques and technology. Homes are well built and well insulated.
No Bidding Wars
With new construction, there is no bidding war. Homeowners wanting to sell their existing home and move up/down can get the price they want on their current property and take advantage of the seller’s market and housing shortage. And there are more advantages buying a new home for an existing property.
Building a new home is truly a win-win for all parties involved, and a well-kept secret to beating the housing shortage. Too many homeowners are reluctant to put their home on the market for fear of not having a place to live once the deal closes. The answer is a dream home construction to skip the housing shortage and build the home you always wanted.