Here’s your solution to the never-ending bidding wars

Want to know why there’s a frantic bidding war on most every house on the market these days? The numbers show there just aren’t many for sale. And the situation isn’t likely to change anytime soon.

But there is a way to avoid the competition. You could buy a new build by Allen Edwin Homes.

Unlike making an offer high above asking price on an existing house and then still getting outbid by another party, when a qualified buyer agrees to pay list price on an Allen Edwin home, it’s theirs. Done deal. No drama necessary.

“It simply is first-come, first-served and we then take the home off the market,” said Mike McGivney, vice president of sales and marketing for Allen Edwin Homes.

That’s a nice bit of peace of mind for buyers, who often find themselves in merciless situations in this current housing market. It already was a strong seller’s market a little over a year ago at the outset of the COVID-19 pandemic in Michigan when there was less than two months’ supply of homes for sale – when looking at listings between $200,000 and $400,000 in the markets across the state with communities built by Allen Edwin Homes.

Since then, the situation has gotten even more extreme. As of last month, there was less than three weeks of inventory in that price range. And with supply of homes far short of meeting demand, desperate home buyers are bidding up the prices to unfathomable levels. There is literally almost nothing on the market anymore at some price points.

“You won’t find any supply, really, under $200,000 right now,” McGivney said. “In order for this seller’s market to get back to an equilibrium, you would need a 1,000% increase in the number of homes coming on the market.

“There just isn’t going to be this new inventory that’s suddenly going to create more supply to go look at.”

RELATED: View move-in ready homes by Allen Edwin

Allen Edwin is doing its part by continuing to aggressively add new homes across the state. The builder has about 80 homes under construction and scheduled to be available for occupancy by the end of the year, with another 150-plus homes permitted and slated for completion by the end of March 2022.

But even that is just a drop in the bucket of what’s needed to shift this extreme seller’s market into balance. In the meantime, bidding wars and eye-popping prices will be the norm – unless you buy a new build.

Here are a few more reasons to consider buying a new home from Allen Edwin:

Everything in a new build is new – The average age of existing homes on the market today is between 20 and 30 years old. While many homes from that era may look good on the outside, the interior design is often dated and out of style.

Plus, some of the home’s most important parts – the roof, furnace, air conditioner, appliances – are reaching the end of their life. On top of the asking price for an existing house, you also have to consider the cost of replacement for those big-ticket items.

One benefit of buying a new build is that, obviously, everything is new. New roof. New mechanicals. New appliances. New everything. And a new home comes with warranties both from the builder and the manufacturer of amenities in the home.

Now is actually a cost-effective time to buy a new build – Yes, the list prices on many houses these days may give you sticker shock. But when buying a home, the monthly cost is more important than the price. And with mortgage rates near historic lows, the cost of buying a new build is often more affordable than you’d think.

Plus, with the supply of homes expected to lag demand for the foreseeable future, it’s not realistic to think that prices will be lower next year. At the same time, the monthly cost of a home could be much higher next year if mortgage rates rise.

For example, right now a $300,000 mortgage at a fixed 3% interest rate over 30 years has a monthly payment of $1,265. If rates rise just 1%, then you could borrow only $265,000 at that same monthly payment. You stand to lose more than 10% of your buying power by waiting!

Allen Edwin locks in the price of your new home – The COVID-19 pandemic has affected so much of our economy, and that includes homebuilding. The price of lumber and many other materials is higher and changing daily. But when you sign a purchase agreement on a new home with Allen Edwin, you don’t have to worry about your price changing.

By buying a new build from Allen Edwin, you also can be confident that your home is going to be completed on time. While some builders and remodelers are having a hard time getting certain supplies right now, Allen Edwin can go directly to suppliers to ensure that materials arrive on time because they are the largest buyer of home building supplies in Michigan.

“Today, people want certainty,” McGivney said. “That gives our homeowners a lot of confidence and peace of mind to know that one, my price is my price, two, the certainty of their monthly payment, and three, I don’t have to overpay in a bidding war against 10 other buyers.”