In a hot market, being flexible in your home search helps
Being flexible in your home search criteria can minimize stress.
I get it.
The last time we all remember such an intense housing market was in the early-to-mid 2000s. During that time, houses were being sold under similar strategies and they were selling the second they listed.
I know, because I experienced the nuttiness in 2003. I wasn’t an agent then, I was a buyer actively seeking my first home. At that time, I lived in Hampton Roads and I was looking for anything in Virginia Beach, Norfolk and Portsmouth. I was well qualified, but cautious. I had a solid down payment and money for closing costs. And my job was flexible enough that I could see a home the moment it became available.
What a perfect client I was. :-) Sadly, that didn’t matter.
And while pinpointing an interim location doesn’t work for everyone, it’s a good strategy to employ as a first-time homebuyer in a hot market.
My agent and I made numerous offers in every town and ‘hood I was looking. Condos, townhomes, single family. And every single one was trumped by someone who was willing to do what I wasn’t. Waive a home inspection. Offer tens of thousands of dollars over asking. Pay cash sign unseen.
After months of putting in losing offers, I moved 2 hours north to Richmond and bought a house in the Northside, where it wasn’t as competitive at the time. That strategy worked really well for me. I was able to get in at a reasonable price and saw a significant appreciation in home value in just a few years.
And while pinpointing an interim location doesn’t work for everyone, it’s a good strategy to have as a first-time homebuyer in a hot market.
Let’s just say as a Richmond native you’re dying to live in the Fan. It’s something you’ve dreamed about most of your life. But you keep losing to super aggressive offers and you don’t have the cash (or the stomach) to compete.
Curious what your home is worth? Check it now. (Doesn’t hurt to look.)
This is when you expand your search. There are some great homes with strong bones in other neighborhoods across the city. I drool and some of the properties in Manchester, Church Hill and Westover Hills. Even better, find a location in bloom and help be part of its rebirth. You’ll watch your property values increase, while deepening your roots in the community.
Making that first smart investment gets you that much closer to your goal. So when you sell, you can have your sights set for what’s next. And let’s face it, with rent at an all time high as well, it’s almost uneconomical to rent at all.
I have a friend who lives in the West End and her end goal was The Colonies at Wilde Lake. She knew in this market, getting into that neighborhood would be an exercise in frustration. So she decided to make a 5- to 10-year plan. She targeted a step-neighborhood—one that would get her closer to her goal. In a few years, they’ll call The Colonies home.
According to the National Association of Realtors, up until 2008, people stayed in their homes an average of six years. Since 2008, it’s been nine. However, with so many people employing the interim strategy, I expect that number to start ticking down.
So if you’re in this boat, don’t get discouraged. Expand your search and see if you can find the gem that gets you that much closer to your end goal.