New Rules of Buying a Home
Hear from five of our Leverage Global Partners who share their insights and tips on buying a home in the ever-changing housing market.
Buying or selling a home can feel intimidating, especially given the changes in the housing market over the past two years. The COVID-19 pandemic had a significant impact on buying and selling a home with homeowners everywhere reassessing their space and questioning whether it’s time for a change. With a record number of people moving, learning the ‘new rules’ of buying a home is crucial whether you’re moving across the country, looking to buy your first home, or looking to downsize to a smaller residence.
We’ve tapped five of our Leverage Global Partners to share their insights and tips on buying a home in an ever-changing housing market.
Generational Shifts in the Housing Market
Carol Koffel of Avenue 8 in San Francisco shares how the events of the past two years have persuaded more Baby Boomer home owners into selling their homes and pushed younger generations towards becoming homeowners. “Baby Boomers have a tendency to calculate and ask a variety of questions including: ‘Where do I move to?’, ‘What do I do with all these things?’, ‘Can I afford to retire?’, and ‘What is the net from the sale of my home of 30 years?’” says Koffel. “Millennials, Gen X, & Gen Y are in transition as well and ask, “I need more space, what can I afford?” “We’re all part of a global population now.”
Highest Return with the Least Amount of Pain
Bradley Marshall of Lot & Block Group in Dallas, Texas shares his process with sellers once the market is in a “fever pitch” with multiple offers and three days to contract. “The discussion often now starts with what the plans for their next move are and how to navigate the balance of highest return with least amount of pain, though generally they often find they can be one in the same,” says Marshall. “Though no matter the pace of the market, ensuring you get the highest dollar for a property and not just a ‘good price’ is where true experience and expertise can make all the difference.”
Turning a House into a Home
William Ashman of Avenue 8 in Los Angeles emphasizes how the pandemic caused buyers to desire a sense of family and community when looking at homes. “More than ever, buyers are aware of the inadequacies of their current homes wanting more space outdoors and less coldness in the home with more conversational warm spaces with textures, warm beige and pastel colors, reminiscent of the early 70s postmodern era.”
“To sell your home for the best price in this market, sellers need to make sure their home has a warm but new vibe, and if you’re not capable of staging yourself, you definitely need to hire someone,” says Ashman. “Buyers are wanting to buy into an experience that they can imagine themselves living in.”
Widening the Buyer Pool
Tamara Williams of Tamara Williams and Company in Bozeman, Montana has seen the mass migration widen the buyer pool and change how sellers market their homes. “Sellers are encouraged to prepare for 3D virtual tours and video in addition to professional photography. The number of buyers making sight-unseen offers has escalated in recent times to almost 50% of the sales we are experiencing.”
“Many sellers think they can put their home on the market without doing any work and it will still sell, but taking proper steps can yield more offers and push the sales price even higher. When proper steps are taken, sellers can negotiate leasebacks (sometimes at no cost), the release of earnest money at an early stage in the buying process, and very solid contracts.”
Striking While the Iron is Hot
Christopher Fajkos of Tahoe Mountain Realty in the Tahoe area shares how sellers are quick to put their houses on the market and complete necessary inspections compared to the traditional wait time. “In this hot seller’s market, it’s now completely normal for sellers to have all of their inspections and disclosures completed before even listing their home. The idea is to have the property ‘teed up’ so that offers come in with no contingencies,” says Fajkos. “For some markets that have traditionally been hot this isn’t anything new but for second home markets like Tahoe this is a huge paradigm shift.”
Our agents at Leverage Global Partners understand the challenge of adjusting to this new housing market and are here to help both buyers and sellers navigate the process. If you are looking to either sell your house or on the hunt for a new home, any of our agents would be happy to help.
If you are interested in learning more about Leverage, please contact us at [email protected]