Friday, March 12, 2021 / by Rachel Green
What to Expect When You're Expecting to Buy a Home
You've likely heard this market is bananas, but what does that mean for buyers? As a buyer, what should you expect in this market?
I've heard buyers say they can't compete with cash buyers, so they're going to wait. I've also heard buyers say they hear "every home gets 37 offers". We, at SaltLakeHomes.com, are putting buyers under contract every week, of which most of these buyers are not paying cash, so buying in this market is absolutely possible... but don't take our word for it, let's look at the numbers. We looked at the last 30 days in Salt Lake, Davis, Utah, and Tooele Counties to see exactly what is going on in this market.
Below you can see the breakdown of how many homes sold in each county and what type of financing the buyer used to purchase the home. It's incredible to see the trends are consistent in each county and are consistent with the Utah Association of Realtors statistics of home financing from 2020. Typically, about 15%-17% of homebuyers pay in cash and this market is not different.
SALT LAKE COUNTY: Homes Sold in Last 30 Days: 1,229
Tips from the experts:
•Make a list of must haves, wants and then "it would be nice". Also consider several different locations or areas, drive them, look at stores and schools or freeway access, what is important. Sometimes I think buyers may miss a home that is a fantastic opportunity because of lack of clarity. -Michelle Pollock
•Be available and flexible to look at properties. Things move quickly in this market and there are a lot of variables in getting a showing, ie seller schedules [especially with sellers working from home], other showing appointments, and your schedule. -Sarah Bennett
•Put your best foot forward. Write your best offer right away. Don't hope the seller counters and don't wait for the seller to call for highest and best. -Sarah Palmer
•Second place is not always first loser. Being in backup could mean you win if the primary offer walks away, and in that case, you might be getting a better deal than what the primary offer won with. -Wendi Gladwin
•If you have a home to sell, let's put together a plan that can help you win. When competing against multiple offers, a seller isn't likely to consider the offer that has a contingency. -Rachel Green
•Be prepared. Have your preapproval complete and know what your budget, down payment, and closing costs are. -Chris Green
•Be Patient. The right home for you is the one you'll move into. It will likely take a few offers to get there. As long as you're doing your best, with the right agent, you'll win on the home that is meant to be yours. -Rachel Green, Realtor
•If you're expecting to close after April 15th, make sure your taxes are filed. E-filing with your accountant or where ever you file is best, to not delay the process. -Travis Carter, Mortgage Lender
I've heard buyers say they can't compete with cash buyers, so they're going to wait. I've also heard buyers say they hear "every home gets 37 offers". We, at SaltLakeHomes.com, are putting buyers under contract every week, of which most of these buyers are not paying cash, so buying in this market is absolutely possible... but don't take our word for it, let's look at the numbers. We looked at the last 30 days in Salt Lake, Davis, Utah, and Tooele Counties to see exactly what is going on in this market.
Below you can see the breakdown of how many homes sold in each county and what type of financing the buyer used to purchase the home. It's incredible to see the trends are consistent in each county and are consistent with the Utah Association of Realtors statistics of home financing from 2020. Typically, about 15%-17% of homebuyers pay in cash and this market is not different.
SALT LAKE COUNTY: Homes Sold in Last 30 Days: 1,229
- CASH: 192 (15.6%)
- Conventional Loan: 845 (68.8%)
- FHA/ Utah Housing Loan: 154 (12.5%)
- VA Loan: 29 (2.4%)
- Other: 9 (0.7%)
- CASH: 56 (17.4%)
- Conventional Loan: 214 (67%)
- FHA/ Utah Housing Loan: 29 (9%)
- VA Loan: 15 (4.7%)
- Other: 7 (2.1%)
- CASH: 132 (17.9%)
- Conventional Loan: 491 (67%)
- FHA/ Utah Housing Loan: 72 (9.8%)
- Rural Housing Loan: 13 (1.8%)
- VA Loan: 20 (2.7%)
- Other: 9 (1.2%)
- CASH: 14 (13.3%)
- Conventional Loan: 56 (53.3%)
- FHA/ Utah Housing Loan: 21 (20%)
- Rural Housing Loan: 6 (5.7%)
- VA Loan: 8 (7.6%)
Tips from the experts:
•Make a list of must haves, wants and then "it would be nice". Also consider several different locations or areas, drive them, look at stores and schools or freeway access, what is important. Sometimes I think buyers may miss a home that is a fantastic opportunity because of lack of clarity. -Michelle Pollock
•Be available and flexible to look at properties. Things move quickly in this market and there are a lot of variables in getting a showing, ie seller schedules [especially with sellers working from home], other showing appointments, and your schedule. -Sarah Bennett
•Put your best foot forward. Write your best offer right away. Don't hope the seller counters and don't wait for the seller to call for highest and best. -Sarah Palmer
•Second place is not always first loser. Being in backup could mean you win if the primary offer walks away, and in that case, you might be getting a better deal than what the primary offer won with. -Wendi Gladwin
•If you have a home to sell, let's put together a plan that can help you win. When competing against multiple offers, a seller isn't likely to consider the offer that has a contingency. -Rachel Green
•Be prepared. Have your preapproval complete and know what your budget, down payment, and closing costs are. -Chris Green
•Be Patient. The right home for you is the one you'll move into. It will likely take a few offers to get there. As long as you're doing your best, with the right agent, you'll win on the home that is meant to be yours. -Rachel Green, Realtor
•If you're expecting to close after April 15th, make sure your taxes are filed. E-filing with your accountant or where ever you file is best, to not delay the process. -Travis Carter, Mortgage Lender
If you're wondering what to expect in the market for 2021, check out the 2021 Housing Forecast.
Are you curious about buying or are you ready to chat with an expert and put together an plan to get ready for spring home shopping? Give us a call at 801-893-1088.
Are you curious about buying or are you ready to chat with an expert and put together an plan to get ready for spring home shopping? Give us a call at 801-893-1088.
