It feels like we’re back in 2021 or 2022 with the strength of the Sellers’ Market right now. Continued ultra-low inventory of homes has resulted in way more demand than supply. Buyers are getting into bidding wars and escalating their offers well above list price again. My last listing garnered 11 offers in just three days, many with no contingencies. We even decided to cancel the Open House we had scheduled, since my client already had plenty of amazing offers to choose from. And, in fact, the offer she chose was almost 8% over list price.
So it’s a great environment for Sellers. But what’s a Buyer to do?
Part of the REASON for low inventory right now is that Sellers have no incentive to move. They’ve typically locked in a low interest rate, and they don’t want to be out competing in this crazy housing environment. So it’s a vicious cycle. Until more homeowners decide to sell, there just won’t be enough inventory to satisfy demand.
But there is a solution if you DO want to move…
Consider NEW CONSTRUCTION.
Right now, one-third of all homes on the market are new construction. That’s a lot. And builders have gotten beyond many of the supply chain and labor challenges they faced during the height of the pandemic. So the process goes a lot smoother than it used to, with fewer delays.
Here is why buying/building a new home may be a good idea for you…
- You know EXACTLY what you’re paying — no bidding wars.
- Builders even offer incentives — one I visited last week was offering $50,000 in credits toward options AND $10,000 toward closing costs if you use their lender.
- You may be able to use this money toward closing costs to “buy down” your interest rate — this helps solve the apprehension over today’s higher mortgage rates. (For more on buy downs, see my previous Blog post.)
- You can time the sale of your current home with the delivery date of your new home.
- You don’t have to waive a home inspection — in fact, you usually get TWO (pre- and post-drywall).
- You don’t have to worry about the home not appraising.
- You’ll be less stressed and rushed getting your current home ready to sell, since building a new home can take 6-12 months.
- If your desired timeline is quicker, you can typically find “quick delivery” homes that are priced competitively by the builder.
- Everything is new and covered under warranty — unlike resale homes which can deliver unexpected surprises (and expense) after moving in…when something doesn’t work as it should.
- You can build your dream home, picking all the options yourself — no spending money to “undo” someone’s bad decorating!
So as you can see, buying new construction solves pretty much all the challenges in the market right now.
And inventory? Well, fortunately there’s still plenty of new construction in northern Virginia, so contact me if this is something you might be interested in. Whether you desire a single family home, a townhome (with or without an elevator), or even single level living, it’s out there! I particular loved a large single level living floor plan from Toll Brothers that I saw last week.
Working with a Realtor® like me to buy new construction is a no-brainer.
Why not have an advocate? After all, you don’t directly pay a commission for a Realtor’s® help (the builder pays us a referral fee). And I can put my experience to work for you…helping you negotiate incentives and advising you on design and structural options that give you the best return on your investment. Then, I refer you to a great inspector for both pre- and post-drywall inspections and am there with you every step of the way to the closing table. (For more on this, see my previous Blog post…)
I look forward to hearing from you and beginning a search! Don’t let this market keep you from realizing your housing dreams!