Buyers Purchasing Before Homes On Sale

If you have any doubts that the current housing market is in an upswing, just refer to a recent article published by RisMedia. According to the popular Real Estate website, house hunters who are disappointed by the current housing selection have begun to contact homeowners whose houses are not even on the market. In most cases, these buyers work with a Realtor who has access to the database of houses in their desired area that were previously listed and did not sell as well as upcoming listings that have not yet hit the market. Many Realtors, myself included, will also contact the homeowners of a house that my client really loves simply to discover whether selling is something that may interest them. 

According to Joe Grunnet, a Minneapolis broker, a shadow market exists that includes many potential sellers who would like to sell their homes, but have chosen to rent them out or wait for a turn in the market. They are unaware that many people are currently buying and that right now is a prime opportunity to find buyers willing to pay full or close to full asking prices. Grunnet's firm specializes in the sale and rental of downtown condos and lately, as the number of available units has dwindled, he has begun to contact condo owners who rent their properties to see if they are willing to sell. It appears to be working since he has sold more off-market condos in the first four months of 2012 than in the previous three years combined. 

The important thing to remember when pursuing a home that is not on the market is that the owner's may not want to sell. Flexibility and an open mind are important. Fortunately, there are may homeowners who are ready to sell, but are unaware of the recent influx of home buyers and the shortage of viable properties on the market. 

How To Access the Shadow Housing Market:

1. Find a good realtor: Get connected with someone who specializes in the location that you desire to own a home. The more people they've worked with, the more connections they will have to potential sellers. 
2. Figure out exactly what you want: Narrow down what you want from number of bedrooms to a basement rec room. This will help your realtor when searching the MLS for previously listed properties. 
3. Drive around: If you're bent set on a specific area, spend some time driving around the neighborhood. Let your realtor know about any homes that you would love to make an offer on, listed or not. 
4. Get in contact: As the buyer, you can leave this task to your realtor, but make sure to follow up with them. Some realtors will contact potential sellers with a quick note in the mail explaining that they have a party interested in their home. Other options include calling the owner directly or stopping by their house to inquire about the possibility of a sale. 
5. Get comfortable: Home selling takes time even when a homeowner has listed their property and is ready to move elsewhere. When you're purchasing a home from someone whose property was not listed, you can expect it to take time for that person to settle on an asking price, find a new house and prepare for the actual move. If you've found the home of your dreams, it's worth waiting for so allow the process to unfold naturally. 

As an East Lansing Realtor, I am happy to assist you with all of your real estate needs. If you're a buyer looking to tap into the shadow housing market or a seller ready to take advantage of the current surplus of home buyers, contact me at MyRealtorRob.