By: Brendan Adams
The amount of buyers in real estate is increasing as interest rates are decreasing.
Real estate interest rates have decreased, which is causing both buyers and sellers to be active in the recent months. It is becoming busy for both sides because the low interest is leading to many people wanting to buy houses while it is still low cost, while sellers want to put their house up for sale due to bidding wars with buyers.
Michael Malone, a lender at CMG Financial, says that the real estate business is beneficial for both buyers and sellers: “It is a good time for sellers and buyers. As a buyer, there are not a lot of houses available though,” he said.
The lack of available houses makes the real estate business even more busy, as this leads to bidding wars, where multiple buyers are interested in the same house because there are only a few houses on the market. This causes the seller to look over multiple offers at once, and then decide who is more qualified for the house, credit score being a big indicator in that situation.
Holly Adams, a realtor with Remax Alliance, says that lack of houses on the market gives an advantage to the seller, since it gives the seller a plethora of decisions when it comes to which buyer they will sell to.
“There are a lot of buyers out there, so we are running into a lot of bidding wars, where a house comes on the market, and there are like eight offers on one house. The sellers are able to look at all eight offers at the same time and see if the buyers are asking for a home warranty, closing costs for the sellers to pay, and they get to choose which one is the best for them.”
While buyers enjoy the low payments that go with buying a house nowadays, it can end up being difficult trying to get an offer in before another buyer when the houses that are available are slim.
Competition is high right now for houses, and having patience is very important, even though it can be hard to have. Michael Zizzamia, a buyer that knows the hardships of buying a house during these high pressure times, says: “The most difficult part of buying a home is making sure you do not let your emotions lead you into falling into a hole or trap. Also, not over-paying for a property or stretching your finances too much just to close a deal takes a lot of self-control and patience.”