Buyers can compete in an intense seller’s market
don’t overpay
In a market characterized by sharp-elbowed buyers, paying too much for a house is a real threat. “When you see multiple people offering more than the asking price, that fear of missing out kicks in.” Smart buyer’s say, “As a buyer, you’ve got to be careful. You can get caught up in that and pay more than the house is worth. I walked away from several houses because they just weren’t worth it.”
Buyers have been watching Connecticut home prices for more than a year before they would buy. Up until the pandemic hit, the state was a buyer’s market. “Homes would sit on the market for a year.” “You would see them come on the market at a certain price, and then they would just drop, drop, drop.”
That’s no longer the case, of course, but the housing market’s recent history lends you some perspective. While housing “economists” agree that a crash in home values is unlikely, the Great Recession serves as a not-too-distant reminder of the dangers of overpaying.
The home appraisal can act as a guard rail against paying too much. While appraisers understand that values are spiking, they are unlikely to assign a super-aggressive value to a home. If the appraisal comes up short and you still want the home, you’ll have to add more cash to the deal to make up the difference.
Call and Text Steve Schappert 203-994-3950
Email Broker@CTREB.com
Bring Your Lender!
Truth
You are a concerned homebuyer or homeseller and you need to know what is happening in your housing market so you can make the most informed decisions possible.