The residential real estate market in Metro Detroit and across the U.S. is more competitive than it’s been in years.
Homes are being listed and sold within hours, and sellers are getting offers way above their asking price. Right now, it is a true seller’s market.
“I thought last year was going to be the peak of this, and it hasn’t really changed,” said Kyle Desmond, a realtor with Hall & Hunter Realtors. “Every house that’s listed that’s good and listed at a good price, there are multiple offers the next day.”
What’s driving up the prices of homes?
Experts say it all comes down to supply and demand. Inventory is low all across Metro Detroit, and Desmond says he doesn’t see it ending anytime soon.
“I don’t see it stopping until you see an uptick in the inventory,” Desmond said.
Read more: US housing market fuels bidding wars, driving prices higher
So, what can potential buyers do to get a competitive advantage and make their offer stand out from the rest?
“Be a good buyer, have a good pre-approval, work with a good lender,” Desmond said. “And then ... you gotta get creative. You want to give (the seller) occupancy, because a lot of people right now need 30 to 60 days. Give them that for free, let them stay, let them have their time.”
Insiders say that if you find a home that you really want, you may want to consider waiving the appraisal, or the inspection. Desmond says if you do an inspection, keep the inspection period short, or do a pass/fail inspection. That way, the seller knows that you aren’t going to come back and ask them to complete or pay for repairs.
Also, include a handwritten letter that lets the seller know why you think that home is perfect for you and/or your family.
Interest rates are currently on the rise, and many believe that could actually help stabilize the market.
But, as of right now, it continues to be a seller’s market, and inventory remains incredibly low.
Related: Red-hot housing market to fuel record borrowing in ‘22