• Alvi Campos

Buying A Home in A Hot Segment of The Market

One of the most common notions regarding the market is that the real estate market is “hot and booming.” From my perspective, I agree and disagree with the aforementioned notion as that blanketed statement doesn’t provide a realistic expectation for all the pockets within the market. At the present moment, the segment of the market that I think is the “hot and booming” are homes in desirable neighbourhoods that are priced between $350,000 - $550,000 with bungalows with renovated kitchens, bathrooms, and up-to-date shingles, windows, and furnaces commanding top dollar within this segment. Listings within this hot segment are commanding a lot of attention and getting plenty of showings the moment that they hit the market. Furthermore, many of these houses that are in good condition are selling at or above list price within days of being brought to market. Although this is great for sellers within this segment, it makes it difficult and sometimes demoralizing for buyers searching for homes within this pocket. When working with a buyer looking for a property within this segment of the market, it is important to have your buyer prepared to make an offer on the home they like. The reality of buying a home in this segment is that the home may be sold before there is a chance to do a second viewing. Here are a few tips when buying a home within the hottest segment of the market: 1. Ensure that your buyer knows how much they can afford prior to touring properties. Knowing how much can be afforded is very important to know on how much the buyer can offer for a home that will likely sell above list price. Have you buyer work with a mortgage broker who is quick to respond and who you can trust to get all the financials arranged in a short period of time. 2. If your buyer likes a home, it is very important to talk about the price that the home will likely sell for and if that price is worth it for them. When exploring homes within this segment of the market, there is very little room for negotiation that comparable sales within the area sometimes become irrelevant. The most important factors to consider are: can your buyer afford it and is this the perfect home for them. Many of the times the answer is yes to both questions, which then results in a sale above list price. 3. Be patient. Buying real estate is a significant investment that regardless of how hot a segment of the market may be, agents should still advise patience to their buyers so they can find the home that is perfect for them and their loved ones. However, once the perfect home is found, they key is to be prepared and to act fast in hopes of securing the desired property. 4. Approach every showing as if it is your last showing of the property. In a hot segment of the market, buyers will generally have one chance to view a property before they make an offer. Have limited time to view a home makes it even more important to be diligent in your walkthrough of the property before you offer. Although I always recommend buyers make any purchase conditional to a home inspection, as an agent it is still important to look for water damage, stained titles, and any other damages that may be detrimental to the property. If you are a buyer looking to purchase a home in Saskatoon and surrounding area and are looking for a real estate expert to help you throughout your journey, please don’t hesitate to contact me today. Alvi Campos, MBA C: (306) 716-2774 E: alvi.campos@century21.ca W: alvicamposrealestate.com

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