Challenges for Buying a Home In Greater Lansing

Just as we have forecast, demand for homes is continuing to escalate. Inventory of salable homes is still lower than normal and buyers are abundant. The relaxing of lending standards is qualifying more buyers and the economic attractiveness of buying versus renting is bringing more buyers to the market. 

There is a new twist to market demand and that is the increasing presence of the ‘all cash’ buyer at higher price points. 

Where are these ‘all cash’ buyers coming from?

• These may be buyers who have enjoyed a vigorous stock market run up and are putting funds to work in tangible investment property.
• They may be people of some means who do not need to sell in order to buy and who see a buying opportunity perhaps as an investment or for housing for a student attending Michigan State University or Cooley Law,
• They may be people coming out of foreclosure who have saved the money normally used to pay a mortgage because they knew they would be credit challenged and now are buying for cash.

So what are the challenges for home buyers?

With increasing buyer demand in general and the presence of cash buyers, multiple offers on well priced property are very common. 

• Buyers who are not pre-approved for a mortgage from a reputable local lender are at a serious disadvantage.
• Buyers offering less than asking price or for seller concessions are at risk of losing a home.
• Buyers whose offers are contingent on anything other than inspection are likely to be unsuccessful.
• Buyers who are unwilling to make an offer on a home they like very quickly are likely to be left out in the cold.

Buyers need to be represented by a professional REALTOR who can consult with them on market conditions and home values and they need to listen to the agent in order to avoid disappointments.