What is a Balanced Market?There are three types of housing markets:
- Buyer: There are more homes for sale than buyers.
- Seller: There are more buyers than there are homes for sale.
- Balanced: The housing market has reached a state of equilibrium, meaning that supply and demand are equal.
How to Buy Under Balanced ConditionsHere are seven tips for buying under balanced market conditions:
#1 Stay Within Your BudgetThe first thing any buyer should do when planning to buy a property is to have a budget. This is a crucial step before beginning a search for properties. Buyers need to possess a clear idea of their financial standing and should be aware of what they can afford in terms of how much down payment they can make and how much monthly mortgage payments they can handle.
#2 Market ResearchBe it a buyer’s or seller’s market, prospective homeowners need to know the market where they intend to buy. Understanding market trends and dynamics is extremely important so buyers do not end up overpaying or buying a property in a bad neighbourhood or location with low resale value. Research is critical for making informed decisions. This is even more important in a balanced market, as other people may want the same property. By knowing more about the market trends and dynamics, you can make a more attractive offer for a property you like.
#3 Work with a Real Estate AgentBuyers benefit from the services of a real estate agent because these industry professionals have the necessary knowledge and experience to understand and navigate market conditions and find a property that fits a buyer’s budget and personal preferences and requirements.Indeed, a significant advantage for buyers is that real estate agents do not charge buyers a commission. The seller handles that component. Real estate agents act like influential middlemen by connecting the right seller with the right buyer. They get their commission from the seller, the seller gets the sale, and the buyer gets a property that fits their needs.
#4 Don’t Be RigidWhile it is true that customers often have the upper hand in buy-sell situations, it is also correct that both buyers and sellers have many options in a balanced Canadian real estate market. As a result, negotiations can be crucial in making or breaking a deal. Ultimately, be flexible if you think a property is the right fit for you. This does not mean you should give in to all the demands of a seller, but you should be flexible enough to be open to negotiating the property price, closing costs, and other related terms and conditions.
#5 Pre-Approved MortgageOften, buyers fall in love with a property, have their hearts set on it, and start the mortgage approval process afterward. This can sometimes end up causing major disappointment. It is a good idea to get pre-approved for a mortgage first. This can help avoid unnecessary surprises and show you how much you can afford and what offer you can put on a property.
#6 Location MattersBuyers need to push location to the top of the list of essential attributes during the home-buying process. Before deciding on a property, consider the surrounding neighbourhood, schools, amenities, and transportation. This not only affects you when you become the new owner but can also be very useful if you decide to resell the property later, as properties with a good location tend to have high resale value. Sometimes, buyers make the mistake of settling for an inferior location for a low price. This might seem a good idea at the time, but it may not work out so well in the long run.
#7 A Professional Home InspectorDuring the 2020-2021 housing boom, there were many reports of homebuyers abandoning the services of home inspectors so they could close the deal sooner. This is a mistake, no matter the real estate environment. Having a professional home inspector assess the property’s condition is essential. This is another crucial step, as home inspectors can identify potential issues that need to be addressed before any deal is made or any papers are signed. In addition, home inspectors are trained to identify problems that a regular layperson would not even consider. Ultimately, seeking the services of a reputable and experienced home inspector is vital before making any offer on any property.
If you want to chat about the real estate market call or text me 780-298-3637 or shoot me an email Sold@SarahLizee.ca