5 Tips for Smart Home Buying in a Seller’s Market
Being a buyer in a seller’s market can be tough. Often, homebuyers do not adjust to the market accordingly and so they are left feeling frustrated and unsuccessful. This doesn’t need to happen. If you follow these 5 tips for smart home buying, you will be much more successful at getting your offer approved even in a seller’s market. All it takes is a change in tactic and strategy.
- Make sure you trust you realtor. Most people don’t keep track of the housing market conditions until they start their own home search. Realtors on the other hand are constantly up to date with buying and selling trends as well as the quality and condition of the market. It is important however that you truly trust your realtor and feel that they will give you sound, responsible advice. Your realtor needs to advise you properly and give you a buying strategy that will suit the market climate at that particular time.
- Never offer less than the price listed. In a seller’s market, bargaining is less common. Any buying competition will likely offer more than the listing price in hopes that it will entice the seller. Unfortunately buying in a seller’s market means there will be more competition including more competitive prices. Be prepared for this when determining your financing.
- Also consider presenting the buy with an Earnest Money Deposit. Earnest money lets your buyer know you are serious and have money to spend. This can be very intriguing to a seller. You will pay this money at closing anyways so it’s really just getting some of it out of the way up front instead of paying at a later date. Another way to show your seller that you are a serious buyer is to submit pre-approval and proof of funds documents. Have a local lender submit a formal document stating that they have approved you for a loan for the home. These documents prove that you are financially stable and secure. You are proving that you can indeed afford the agreed upon purchase price. This means there will be no surprises for you or the seller as closing approaches. Taking the time to present these documents will be impressive to the seller.
- If you see that the house you wish to purchase will be having a showing, be there on the first night! Don’t wait until the weekend. If you delay, someone else might make an offer before you even get the chance. Once you are at the first opening, make an offer quick! The faster you can move, the better. Most sellers do not want to have people in and out of their home throughout the days and weeks. They would much rather receive an offer on the first night! This give you a better chance of having you offer accepted.
- Finally, ask if your agent can call the listing agent. Sometimes if they have a quick chat, your realtor can get a better sense of what kind of offer the seller is looking for and they can gain some helpful tips. If your offer matches what the seller wants more closely than another and can avoid a counteroffer process, you may have the upper hand. Counteroffers can become tiresome and frustrating. Most sellers would prefer to get what they asked for in the first place and avoid the back and forth.
Buying a home in a seller’s market can be a challenge, but if you are armed with the correct strategy for the market climate, you should be successful. Make sure you feel comfortable with your realtor, make wise offers, provide preapproval documentation from a site like Mortgagerates.org.uk or your local bank, visit showings earlier rather than later, and make sure your agent contacts the listing agent. All of these tips will help make your buyer process much smoother even in a more competitive market.