Buying in a seller’s market can be frustrating, especially when you are competing with many buyers for a limited inventory. Your challenge is not just finding the right home but beating out other homebuyers who are just as keen as you.
Expecting to find the right home by casually visiting Open Houses and viewing online listings cannot work in a seller’s market. So here are some important tips to ensure that you have an advantage over other potential buyers vying for the same property:
- Know your limits before you start.
Know how much you are willing and able to pay and what you are willing to compromise on in terms and conditions. Once you know this, then you are in a better position to decide whether or not you should make an offer. You will not let emotions bias your negotiations if things do not go your way.
- Get your finances in order.
Make sure you are in a financial position to buy. That means getting enough mortgage financing pre-approved before you start the negotiating process. You want to prove to the seller that you will be able to pay for the house and close on time.
- Get a good real estate professional.
You need a good, reputable and experienced real estate professional with local expertise, in a hot real estate market. The agent should get information about listings before or as soon as they hit the market. Also he/she should know how to make your offer stand out. An experienced real estate professional will be very adept to this type of market.
- Once you find the house you want, move quickly.
In a hot sellers market, once a new listing is out, don’t wait until the next day to respond to the listing. If you like what you see, write up and offer immediately. You will be surprised how many offers a sought after property can get in a matter of hours!
- Make a strong offer.
Your offer should be competitive and clean, as in a hot seller’s market, you may not get a chance to negotiate. If your offer is much lower, the seller may refuse to negotiate with you when you increase your offer. Remove as many contingencies as possible, but do not waive those that are important and in your best interest.
- Try and work with the seller.
If you are an easy customer, sometimes you don’t have to pay the highest price to win the deal. Options like giving the seller an option to rent for a few months while he/she searches for a new one, may give you the edge. In a bidding war, paying the seller’s
closing fees (not the agent’s commission) may satisfy the seller more than than increasing your bid.
Dealing with a seller in a seller’s market requires tact and experience. If you are looking to buy a home, contact usand one of our experienced real estate professionals will help you find your dream home.