The median home price in Boise, Idaho has been skyrocketing in recent years.
In October 2018, the median home price was $321,398, which is 19.9% higher than in 2017. This increase in price is due mainly to the fast growing population—80,000 people moved to Boise in 2016 alone.
With so many newcomers and so little supply of residential properties, buying an affordable home in Boise is challenging.
So how do you buy an affordable home in Boise’s sellers market? Here are some tips for buying in a competitive market:
Get a Great Real Estate Agent
Having a great Boise real estate agent makes all the difference when buying a home in a market with a housing shortage.
With homes selling faster than ever, you need a real estate agent who will keep you updated on Boise's newest listings.
You definitely want to be the first to hear about them as people from across the nation are flocking towards Boise to buy homes. The majority of migrants moving to Boise are from California and Washington state where they've sold off their expensive homes to invest their capital in lower-priced markets.
These newcomers flood Boise's real estate market with buyers, driving up the prices of homes.
With a great real estate agent, though, you'll be one of the first buyers to hear about new, affordable properties and you could be one of the first to make a reasonable offer.
A real estate agent also knows all of the characteristics of the communities around town, so they can identify the up-and-coming neighbourhoods. A community like Northeast Boise, which has a mix of new builds and older homes, is excellent for those in search of a family neighbourhood with affordable housing.
The Boise Bench is another fantastic, budget-friendly community near downtown that features classic character homes.
Boise is the fastest growing city in Idaho. Along with the population, businesses have been moving in too. More and more breweries and tech firms have been inundating the city, changing it's core. Those of us living in Boise have seen this change and have raved over the city's improved livability.
So really, no matter which neighbourhood you live in, you're going to be a part of the city's exciting changes.
Create a Plan of Action
In a competitive market, finding a home with everything on your wish list at an affordable price is tough. So, with your real estate agent, make a plan of action.
The first thing to consider is what you want in a home. You should differentiate between your must-haves and your nice-to-haves so you can broaden the listings in your price range.
Also, your real estate agent can help strategize how to craft an appealing yet reasonable offer. You can make an offer more appealing, for example, if you delay the buyer possession and eliminate the contingencies.
A contingency is a condition in a sale agreement that needs to happen in order for the sale to follow through. A common contingency is the sale of the buyers home. Not including a contingency like the sale of your home is appealing to the seller because their sale will go through faster.
Getting pre-approved for a mortgage is an excellent first step when buying a home in a competitive market like Boise.
In June of 2017, 35% of homes sold in Ada County went for over asking, with 1 in 5 being full cash offers. With more and more buyers offering cash, you'll want to have your mortgage pre-approved for as much as possible before you make your offer.
Not only does this pre-approval give you an idea of how much you can afford, it also proves to the buyer that you are able to get a mortgage, making your offer more appealing.
Be Strategic With Your Down Payment
An offer with a high down payment is found to be more attractive to a seller.
In offering a healthy down payment, you seem more serious about going through with the deal. Also, a larger down payment lends more credibility that your approval process for a mortgage will carry out smoother.
Lastly, make sure your down payment is liquid and easily accessible. This way you can provide proof to the seller that you have the money ready to go for when your offer is accepted.
With properties being bought and sold so quickly, you have to be flexible with your time and your wish-list. If a new listing is posted, make yourself as available as possible so you can be one of the first buyers to view the property.
Also, make room in your wish-list for compromise.
You may not find the perfect home in the perfect location -- you may have to consider living further out of town or outside of the neighbourhood you originally wanted. With more flexibility, though, comes more opportunities to find a home in your budget.
Although buying a home in a sellers market is a difficult task, with a great real estate agent and pre-planning, you'll be able to find an affordable home here in Boise that's right for you.
If you're looking for an experienced Boise REALTOR® to guide you through the home buying process, considering one of the professionals from the Mike Brown Group. Fill out the form below to get in touch with us and start your real estate journey.