Cora Carleson.................. 4

Hey Cora, I have been working with a realtor for about 6 months now and I cannot find a house! We either seem to be in multi-offer situations, or before we can even see it, it’s already sold. Should I get a new realtor? Signed, Just Asking.

Dear Just Asking, no, it’s probably not your realtor’s fault. It’s just the problem with the housing market right now. Now, there are some ways to get your offer accepted, but you must know the strategies and be willing to use them.

Let’s talk about the market first: We have a housing shortage. There is just no other way to say it. We are short on housing. I have been reading everything I can on what is with the shortage, and this was the most glaring thing that I found on the Realtor.com website for realtors to collect data. Here is what was said: “And the problem is getting exponentially worse as buyers scramble for places to live— and the inventory of available homes on the market just keeps dropping. Last month, there were just 408,922 homes for sale in the entire country of more than 332 million people, according to the latest Realtor.com® and U.S. Census Bureau data. And with the number of new listings continuing to fall, prices are expected to keep rising to new heights as buyers battle it out for just about any home with a “For Sale” sign out front.” This issue is all across the US. It seems that new homes are going up all the time, but we are feeling this shortage right here in our little corner of the world.

Now, let’s talk about interest rates: Rates have been historically low for several years. Never did I believe that interest rates would ever get to 4%, but we have seen well over 12 months of rates below 4%. Last year at the end of December, I saw 2.8%! I was shocked, stunned, pleased, ecstatic and you could even say elated for my clients that got that rate. So of course, when you have lower rates, you have more people qualifying for mortgages. Perhaps more than ever before, thus putting more buyers into the market.

Next, New Construction: Builders have had a tough time lately. I know, everyone would love to just beat up the builders and say they charge too much, and they take too long to get a house built. But this is what they are up against; work force shortages, material shortages, lot shortages and yes, there have even been a shortage of tools! What? Crazy times.

When we have all this going on, of course, it causes a supply and demand issue, we have talked about that before. But your realtor has strategies they can use to get your foot in the door of your dream home! Here are some things you need to do to prepare yourself: 1) Be ready. Be completely prequalified with a mortgage loan specialist so that when the right property comes up, you are ready to go. This is critical. 2) Know exactly what the maximum amount is that you are willing to pay for a house and be prepared to pay it even if the asking price of a house is less. 3) Don’t expect any concessions. What I mean by this is that sellers will not pay your closing costs, pay for a home warranty, or pay for anything, because they don’t have to... and they know it. In this market, if you need closing costs paid, you are not quite ready to buy, you need to save a little more. With some loan programs, you can receive gift funds from a family member. 4) Think about off market options. If there is an area that you would like to live in, let your Realtor know. There are ways that we can contact people, gracefully, and find out what they would sell their home for. 5) Don’t be afraid of multi offers. There are strategies that we can write into an offer to get you in first position. 6) Know that your best hedge against inflation, is owning a house with a fixed rate mortgage! This according to chief economist Lawrence Yun. As we watch inflation increase, those that own homes, will have an edge because as inflation rises, so does the price of that house. 7) Don’t get discouraged, be diligent 8) Save money, DON’T open any new lines of credit. 9) Keep in touch with your realtor and your lender, let him or her know of any changes to your situation, job changes, military status, extra kid on the way – it’s all important. 10) Be prepared to possibly pay more than asking price!

Now, you have the drive, the patience, the knowledge and the loan approval letter in your back pocket! Let’s get out there and find you a house!

Call Cora Today!

Keller Williams Realty Alaska Group Of Wasilla 621 S Knik-Goose Bay Rd Wasilla, AK 99654

www.clcandassoc.com 907.982.5700