How To Be The First To Know About New Listings

Let's face it.  Life is difficult enough on its own without anything added to the mix.  Rearranging timetables, employment in your new destination city, saving for the move, and coordinating logistics from one location to another is a finely orchestrated affair.  At some point, you will reach the intersection or culminating point of each one of these efforts, only to realize that your dream home doesn't exist in your destination market....yet.

Relying on existing home sales, although convenient, is just that - relying on a perfect set of conditions to exist so that you can find your perfect home, at the perfect price, location, size, and most importantly - at the perfect time.  Of course, experienced home buyers already know that given enough time, you can certainly find the remainder of the criteria.  So, in essence, timing is everything.

Timing Multiple Listing Service (MLS) Assets

Each day, hundreds and thousands of listings may change in your MLS.  Some listings get added, some expire and are removed, and some will just change in price.  After you've determined the significant criteria for your home, ask your Realtor how many homes similar to the one you desire have sold in your preferred are over the past 12 months.  This isn't rocket science folks, it's common sense.  If there are dozens like it coming on the market every day, you're in good shape.  If there's only been one in the past year, read the remainder of this article.

Next, ask your Realtor how many Days on Market (DOM) these homes typically stay on the market prior to their eventual sale.  This is relatively easy too.  For example, in one of the markets I currently work, homes stay on the market for an average of 93 days.  What this tells my buyers for that particular area is that they can plan on a particular home in that area (possessing a given set of criteria) for about 3 months.  In the big picture, what this tells me is that approximately 90 days prior to moving to this area, my client is going to want to hit the ground running.  It's time to shop.

Quite obviously, more "normal" will generally be in more plentiful supply in an area, whereas "unique" or more desirable homes will be in much higher demand with a lower supply.  It's going to take longer to find homes that possess stringent characteristics.  That said, the lesson learned here is that the more criteria your home has to possess, the longer it will take to find it...normally.

Stay Alert - Automated Property Search

Now that you know the average of how many days it will take to find your desired home, there has to be a method to maintain visibility on the entire market so that you'll know when your home becomes available.  There is.  The term is called "automated property search."  If your Realtor is on the cutting edge, he/she will acquire software programs that will update you via email automatically when homes matching your criteria come on the market.  In this day and age, there's no excuse for not providing this service to you, as a home buyer.

Why automated?  Okay, your future's at stake, your timing has to be perfect, your mortgage has to be in place, and you're going to rely on a human being to just "let you know" if they see anything that matches your criteria if they happen to run across it?  And you're going to hope it does?  Lesson #2, hope is not a method.  Success isn't based on hope, it's based on methodical, proven strategies that provide you with unprecedented access to the real estate market in your area, and your dream home.

Ask your agent to build your profile into their search programs and update you daily, no matter what.  In fact, some of these programs can update you as frequently as twice per day - that's even better.

You should shop for your builder as carefully as you shop for the right home.  That means looking beyond the style, and beneath the surface, of both.  The right builder can make your new home experience all that it should be. Because the average home buyer only buys 2 or 3 homes during their lifetime, having the in-depth knowledge necessary to make the right decision is more difficult than most decisions you will face.

Be Prepared (Get Preapproved)

Now that you're scanning your destination area daily, you need to take a better look at your preparedness.  What good is it going to do you if you find the perfect home, only to lose it in a battle of multiple offers in a worst case scenario?  How can you prevent this from happening?

Be financially prepared.  You don't want to get prequalified prior to purchasing your home, you want to be preapproved.  This means that you've already submitted your loan application and all supporting documents.  All your lender should be waiting on is a contract containing the legal description of the property and terms, the title work to be completed by your title office, and the survey.  Preapproved buyers make the seller's eyes water with happiness and buy your more credibility when offers are submitted.  Look at it this way, if you entertained 2 offers on your current home with one buyer being preapproved while the other one hasn't even thought that far ahead, which offer would you accept?  Get preapproved.

Know what to do when the time comes

Now that you're preapproved and watching the market daily, what happens when you finally see a home and it interests you?  Move on it.  Call your agent and schedule a time to physically see the home.  There's no time for hesitation when it comes to competing for your dream home.  This is why it's important to establish what it is that you want well ahead of your proposed time for buying.  Statistically speaking, if you've done your homework, you're going to find your dream home and be in an excellent position to purchase it when the timing is right.  You're going to be much more successful because your plan was designed to succeed. 

What to do if you don't find your dream home

From time to time, it's possible that you're not going to find your dream home, or in other terms, the home you wanted matching all of your criteria.  This can happen for a number of reasons:

        1. Your agent miscalculated the average days on market for homes matching your description

        2. The market changes significantly during your home search

        3. Home matching your description just don't come on the market all that often

        4. Your market is currently a "seller's market" with too many competing buyers

        5. You have too many criteria

Your agent should be able to keep you abreast of current market conditions, so the first 4 items are fairly easy to overcome by choosing to work with a professional, full time buyer's agent.  However, the last item on that list is one that you have the power to change.  Although we'd all like to find the home of our dreams, sometimes, it's just not the home of everyone else's dreams and it may not exist at all.  In this rare case, stand back and seriously review your criteria for relevancy. 

Am I really asking for too much?

Probably not.  But you should realize that the more criteria you have for your new home, the longer it will normally take to find it.  Consider your home's purpose.  Is it going to be your retirement home where everything has to be just right?  Or is it only a transient residence that you'd like to possess your criteria?  There is a distinct difference between need and want.  You need a single family residence.  You want a hot tub.  You need 2,500 square feet of living area.  You want 3,500.  If you're not at least somewhat flexible, you're not going to be satisfied with the outcome of your home search.  Much like children, we all envision the home we'd like to live in, but sometimes we find something completely different that we end up loving even more than the home we wanted in the first place.  Lesson #3, keep your options open and your criteria to those that are absolutely essential.  Review as many homes as you can electronically and keep the inventory flowing to your inbox.

Are you asking for too much?  Absolutely not, although it may take a while to find it.