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Lyn Sims

Broker Associate

Why Buying A Home is Not Like Buying a Box of Cheerios

Why buying a home is not like buying a box of Cheerios!

 

Let's talk about supply and demand and how it pertains to real estate and purchasing a home. What gives things value is the supply and demand.  The more demand, the more the price goes up.  Remember the Elmo's and other great toys for Christmas?  People just fighting over things in Toys R Us? That's demand uplifting the price or keeping it the same.

When there are too many of one item, the market is considered soft and the price goes down to see if they can entice people to buy.  Home prices now are at that 'enticing price' coupled with the low interest rates we've had.  Supply goes up, prices go down especially in the housing market.  With housing supply, there is only one pool of buyers for all sellers to compete for.

Now, if we go out and see 10 homes in your particular price range with the current increased inventory we might be able to see 12 or 15 homes.  More to look at and more to choose from at that price - good for the consumer!  But ....what if you decide that you don't like any of those 12 homes? Those are the ONLY homes to choose from at that particular time in the market.  Unless new homes come on the market (and that is not any guarantee) what do you do? Real estate is unique in that respect, we can't just go get more!

As a home buyer you might have to adjust your expectations of what the market has to offer you. If you MUST live in a particular town and the only homes available in your price range were built in the 70's, you cannot expect to get the newest features of a home built in 2000.  It's just not reasonable.

Those particular 12 homes are the only things available.  You cannot drive from store to store looking for new homes to see hoping for a better inventory!

Homes are not a box of Cheerios - you can't just jump in the car and go get more to look at!  There is only one supply of homes available in the MLS and that is the current inventory that you must choose.  Looking on the internet furiously will not 'ferret out' another home to look at.

There is no reason that a buyers agent would 'hold back' or 'hide' a particular home from a buyer.  The buyers agents job is to show you ALL homes available in your price range.  Their job is to have you select the one that best fits your families requirements.  There is no 'secret stash' of homes that only Realtors? know about or is mysteriously hidden on the internet in a vague website.  Sorry.

So hopping from real estate office or agent to agent is not going to produce more homes to choose from.  Homes are not like a box of Cheerios!