Limited inventory Market

BUYING A HOME IN

A LIMITED INVENTORY MARKET

First, check your finances. Take the appropriate steps to haveExpEriEncE your financing secured before you go to look at houses. Get a mortgage pre-approval and have all the thEALLEGG necessary documentation ready to send into your lender. Do not enter the housing market until you are fully DiFFErEncE rE/MA financially prepared with a solid down payment and a reputable loan. This will help you stand out to sellers when you x chOicE make an offer on a house.

Across the United States, many real estate markets are experiencing an inventory shortage. Al Legg, Broker Emeritus with RE/MAX Choice explains, “We are currently in a seller’s market, not only in Bloomington Normal, but all of McLean County.”

The terms “Buyer’s Market” and “Seller’s Market” reference the basic laws of supply and demand. For example, in a “Buyer’s Market,” the supply of homes exceeds the amount of demand in the market, giving the buyer’s leverage. With so many available options, the value of available homes is somewhat lessened. In a “Seller’s Market,” like the one we’re currently experiencing, the supply of homes is less than the demand or number of buyers, which increases the value of available homes.

Navigating a market with limited inventory can be a challenge, but it can be done. Legg advises your first step should be to find out what the activity level is in the market and suggests the best way to do that is to consult with a trusted realtor.

“Your realtor will explain what the market is doing daily, just like the stock market. They will go over the absorption statistics and help you create a strategy, whether you are buying or selling. With inventory currently at an historic low in our area, you need to have a plan.” There are a few key steps you can take to insure you have success.

Next, you need to be realistic about what you can afford.

The average home buyer does not have an unlimited budget and therefore must make compromises on their home purchase. Be sure to keep an open mind while looking at houses and understand that the goal is to find a home that meets all your needs and most of your wants. Be open to making changes to a home to create the exact home you are looking for.

Another important point to remember is you should avoid looking at homes that are at the top of your budget.

In low inventory markets, houses tend to sell over asking price due to competition amongst buyers. Know what your top budget is and make sure you give yourself some wiggle room. Work with your realtor to put your best offer forward and be aware that because of the limited inventory, there will be competition.

A final word of advice is to be ready to move quickly.

Real estate markets with low inventory turn over quickly Most buyers and sellers have

BUYErS& SELLErS cALL tODAY 531-2177

Email:al@allegg.com contingencies on other contracts that restrict the amount of time before they can close. The average contract length can shorten 2203EastlandDrive,Bloomington and requires you, as a buyer, to • Office:309-664-8500 Each OfficeIndependently be ready to move quickly. Start Owned & Operated. packing and researching your moving options early, so the moving process is as seamless as possible once you’re under contract. If you are able, work with a lender who can accept all your documentation and run your preapproval through underwriting before you start looking at homes. “The pandemic has made both buyers and sellers take a real look at what their actual needs are from the property they own or want to buy,” adds Legg. “Housing and the design of new and existing homes will never be the same. Home offices are now high in demand. People are getting more accustomed to working from home, and the home is taking on a new look for the future. It will be an exciting time to experience the changes that are coming. Get with a Realtor and start the journey today.

History Makers History Makers

Honorees

Since 2012, the History Makers Gala recognizes citizens whose outstanding, lifelong contributions of time and talents have helped to make McLean County a better place to live.

Jerry & Carole Ringer

Jerry and Carole’s shared passion for the arts is well-known in the community. Carole says, “(Art) helps to define the quality of life. Even if you are well able to put food on the table, culture is needed for the soul, mind, and spirit.”

Carole was a volunteer and ultimately a professional fundraiser for the Illinois Symphony Orchestra and BroMenn Foundation for the Mennonite College of Nursing. She was the first Executive Director of Illinois Prairie Community Foundation and served on over twelve boards.

Jerry has served on seven boards, as an elder and Chairman of the Building Committee at First Presbyterian Church of Normal, and as a member and past president of the Kiwanis Club of Bloomington, as well as the Cornell College Board for 40 years.

Barbara Stuart

Barbara served for several years as president of the Normal Public Library Board and became the first president of the Friends of the Normal Public Library. She founded seven activist organizations. She also served on the McLean County Board for 17 years as the vice chair of the Justice Committee.

She has a firm belief in fairness, as she urged the adoption of Drug Court, electronic monitoring, Mental Health Court, and Victim/Offender Reconciliation programs. Barbara was the driving force of the McLean County People to People Festival, bringing 3,000 students and teachers for a conflict resolution conference in 1999.

She is currently active with McLean County League of Women Voters, the Multicultural Leadership Program, the Peaceful Schools Initiative, and the Youth LEADS program. Marilyn & Bob Sutherland

During their over five decades in Bloomington-Normal, Bob and Marilyn Sutherland participated in many ways to help make this a better community for everyone, particularly for those who often cannot make their own voices heard.

They also played major roles from the very beginning in the Central Illinois Chapter of the American Civil Liberties Union, the McLean County Jail Review Committee, and the McLean County AIDS Task Force. Their love of the Constitution and their moral code has been the foundation of their many years of being the voice for those who are voiceless.

The Illinois Municipal Human Relations Association formally recognized Bob’s many contributions in 1998 with the Community Service Award. Bob also received the Florence Fifer Bohrer Award in 2017 from the League of Women Voters of McLean County.