May 2020 - Hometown Development

If you’re buying in a competitive market, you’re familiar with the experience of seeing a sign or listing go up on an available home, and almost as quickly, the house is already pending or sold. In a competitive market, there is a high volume of buyers looking for a low volume of homes available for sale. A highly competitive market is advantageous to the seller because they can often sell a home for much more than it’s worth because they know there will be buyers lined up around the block to place bids. Unfortunately, this means the average buyer with an average budget will have a hard time finding an affordable home in their desired area.

You have to act fast when you see a home come on the market you’re interested in, knowing that many others are doing the same. Particularly in West Michigan, people are flocking to the area, drawn to top performing school districts, exciting job opportunities, growing cities with small town charm and, of course, the gorgeous great lakes. To get the jump on upcoming homes for sale in the West Michigan housing market, you’ll want to work with people who know what houses are going to be available before they’re listed, like a real estate agent or investment firm that flips and resells local houses.

Tips and Tricks for Buying in a Competitive Market

Buying in a competitive market requires careful financial planning, thorough neighborhood research, and the development of good instincts that will allow you to make swift and sound purchasing decisions. Here are a few tips and tricks to help you navigate a highly competitive market.

Make a List

Do your research ahead of time about the areas you want to live in. Make a list of your top neighborhoods as well as characteristics you’re looking for in a home. Think carefully about the value of each of those items and rank them in priority. Planning ahead for what you’re looking for in a home means when one is available that checks all the boxes you’ll be ready to jump.

Make a Plan

Have a clear idea of your finances before trying your luck buying in a competitive market. If possible, get pre-qualified for a loan so you’ll have a better idea of your price range. Work with a lender you trust who can help you through the lending process and move things along quickly when you’ve found the right home.

Keep Your Cool

When it can seem like all of your top choices are getting swept away, it is best to keep an open mind. Try to be flexible with your criteria and expectations and, above all, be patient. It can be tempting to make offers left and right like a game of whack-a-mole to try and land a house when the market is hot, but trust that your ideal home has yet to come on the market and it’s waiting for the time to be just right.

Getting Ahead of the Game in the West Michigan Housing Market

In the West Michigan housing market, it can be tough to find the house you want at the right price. If you’re struggling to get ahead of the game, consider adding professionals to your house search team, or expand your search parameters.

Assemble Your Team

Working with a local real estate agent can have serious advantages when buying in a competitive market. A real estate professional can help you scout out homes you’re interested in and may know through their realtor network what homes are going to be available before they’re formally listed. Especially if you have no idea what you want in a home, an agent can work with you to refine your vision and make a list of features that are most important to you.

Out with the New, In with the Old

If you’ve been exclusively looking at newer homes, consider widening your search to include older homes that might need work done. You can often find these homes available at lower prices. If you’ve got DIY skills or are willing to put in the time and capital for home remodeling projects, these can be great price opportunities that don’t sell as quickly as other homes in a competitive market.

Find Hidden Gems

Another class of homes to look for are ones that were recently remodeled. You can still have the price savings and durability of a new home without putting in the remodeling work yourself. To get the jump on recently remodeled houses coming on the market in your desired area, work with a company that specializes in flipping houses.

Real estate investment firms are great to work with in the West Michigan housing market because they have a catalog of hidden-gem properties that have recently been remodeled or are currently being renovated for you to view. They purchase homes at a lower price in order to fix them up, and can pass those savings onto you as the buyer. These homes are typically in up-and-coming neighborhoods and offer you a great quality home for a discounted price.

If you’re hoping to purchase a home in West Michigan, Hometown Development can help! As a professional real estate investment firm, we remodel a number of homes in attractive neighborhoods here in West Michigan. Take a look at our gallery to see some of our previous projects, and give us a call at 616-379-3090 for information about our available properties.

How to Sell a Home that Needs Repairs

If you want to sell your home with major repairs, selling it traditionally will be difficult. Even home-flippers will steer clear of homes that need major updates or fixes. If you’re determined to sell your home, you might consider making the repairs to fix the foundation, leaky roof, pest problem, or other issues. This will take time and money, but it could be worth it if you can get the value out of the home sale.

If you can’t complete all of the repairs, focus on fixing the most important issues first — like the cracked foundation. A solid foundation will be less alarming to buyers and you’ll have a better chance of selling your home on the traditional real estate market. If the foundation only has small cracks or minimal damage, you might be able to have the cracks patched. However, if the damage is severe it may need to be replaced, which can be an expensive job. If you don’t have the funds or time to repair a severely damaged foundation, you might consider selling your home as-is.

What is an as-is sale?

In an as-is sale, you let it be known to buyers that you are selling your home in the condition that it is already in, without making repairs or updates. This will weed out buyers who are looking for a home in perfect condition and attract those who want a project or fixer-upper. Keep in mind you might need to adjust the asking price to reflect the needed repairs.

Benefits of an As-Is Sale

There are many advantages to selling as-is. A few of the most important ones for homeowners are:

You can sell your home quickly

You don’t need to make any repairs

You don’t have to hire a real-estate agent

You receive a fair price for your home

You can avoid the stress of a traditional sale

Sounds great, right? How do you sell your home as-is?

How to Sell Your Home As-Is

If you want to sell your home as-is without making any changes or repairs, there are a couple of ways you can do this. First, you could try to find the perfect buyer. This would be someone who is looking for a house in an up-and-coming area they can flip. This person would be willing to purchase a home that needs repairs — but only if they can get it for the right price. They’re going to be extremely careful with their purchase decisions because they’ll want to make sure an investment in a home with foundation problems, for example, will pay off.

There is a chance you could find this perfect buyer and convince them your home is worth it. You may even be able to agree on a price low enough to tempt them. Still, finding such a buyer will take time. If you want to sell your home quickly, and for a fair price, you might consider working with a real estate investor.

Sell to a Real Estate Investor

A real estate investment company has the funds to make repairs like fixing a cracked foundation or replacing a roof. They can see opportunity in as-is homes like yours and have the time and capital to fix it — which you or a traditional buyer may not. Real estate investors look for homes they can buy in almost any condition and offer fair prices to the sellers. Their purpose is not only to give new life to a home, but to help homeowners get their lives back as well. Best of all, investors can close on an as-is sale much quicker than the traditional sale process — sometimes in less than a week. If you want to sell your house with foundation problems or other major issues, selling to a real estate investor will be your best bet.

Major home repairs like a cracked or problematic foundation are scary. It’s hard to imagine selling a home in that condition, and harder still to imagine the cost to repair the problem yourself. If your home has major damages that you just don’t want to repair yourself, look to Hometown Development. We purchase properties in any condition, and we’d be happy to take a look at yours. Give us a call at 616-379-3090 or contact us online for more information about our cash offer process.

Month: May 2020

What to Know About Buying in West Michigan’s Competitive Housing Market