You DO know the definition of insanity, right?
Continuing to do the same things and expecting different results.
You might think that working harder or longer hours will create the success you desire, and you may ultimately find success, but will that success have materialized because of your tireless work or because the planets finally aligned in your favor?
. . . and so it goes for many wistful House Shoppers in one of the most active real estate markets in the country – Nashville, TN (and the entire MSA).
Not a day passes during which I don’t hear someone griping about not being able to find that “Perfect House.”
“I’ve looked at EVERYTHING on the market, and NONE of those houses are “RIGHT” for my wants and needs.”
This is a classic case for Econ 101 . . . It’s a Supply and Demand imbalance of epic proportions.
We have more Buyer demand than houses available.
In many areas and price points, there is virtually a NEGATIVE supply of houses which translates to a frustrating slog through multiple “multiple offer scenarios” before tasting the sweet nectar of WINNING . . . often followed by remorse for having given up on some of their wants and needs simply for the sake of getting SOMETHING . . . ANY HOUSE under contract.
A “Healthy” supply of available houses is 3-5 months of inventory . . . so . . . If 5 houses sell each month in your target neighborhood, there would need to be 15-25 house on the market at any given time for you to consider. Of course, this is easy math . . . your odds of getting more of what you want would increase precipitously.
The often unasked question by folks facing this supply shortage gauntlet with overwhelming frustration is:
What different can I do to increase my odds of getting what I want other than watching the MLS into the wee hours of every morning and/or simply WAITING for the right house to come along and WINNING (by the grace of God) the bidding frenzy that ensues?
I have some ideas . . . Let’s begin by changing our view from 100 Feet to 5,000 or 10,000 feet.
We do this by expanding our parameters.
- Location – Don’t abandon hope for that ideal location . . . continue to watch the market there, but move out from there and consider other areas where you might find a similar quality of life (Isn’t this what you’re REALLY buying? Quality of life?) Expand your geographic horizon!
- Lifestyle – Time for some introspection . . . Could you consider a wildly or mildly different lifestyle? More urban or less urban? Condo instead of House? Think ahead . . . How is your lifestyle likely to change over time? Let’s find a dwelling that supports your future transitions.
- Price Range – Have you considered changing your price range to significantly more or significantly less? I had a client looking in the Million Dollar market and not finding anything suitable . . . On a whim, I threw caution in the wind and looked in the $500,000 range in a different location . . . We found the PERFECT house for the client to live in until they are able to find (or build) that dream home.
- Finishes and amenities – This goes with price range also . . . How ’bout shifting focus more on LOCATION and the LOT? Quit worrying so much about the house. This is a veritable quest for the jewel in the rough. Get that perfect location and lot at a significantly lower price and then CREATE the perfect house by up-dating or expanding the existing house or building a new house on the lot.
- Investment – Consider approaching this “Project” as an investment strategy. Shift your thought process to: “What could I buy now that would have a high probability of yielding a large PROFIT in a couple of years? Buy an “investment property” (rentable house, duplex, condo in a HOT area) and live in it until the market becomes more healthy. This would entail (GASP) living below your means in relative discomfort for a while but would provide a roof over your head AND a probable, long term financial gain. This would be a property you would KEEP and rent when you find that right house to buy.
These 5 “out of the box” ideas are intended to prompt frustrated Home Buyers to think differently such that we can all break this gridlock of High Demand/Low inventory.
This level of strategizing is what keeps me and the Vital Few Real Estate Sales Professionals of Pareto Realty awake at night.
We are the consummate log-jamb breakers when it comes advising our Home Buyer Clients.
Connect with us when you’re in the mood for a smart move 🙂
Happy Labor Day Weekend!