Well, it’s official – according to the National Association of REALTORS there is a housing supply shortage. Homes are going fast and prices are starting to go up. That means it’s a seller’s market in many areas.
Any time the market changes; your buying strategy should too. During a buyer’s market, buyers can make more demands to sellers over their homes’ price and condition. During a seller’s market, buyers have to concede the upper hand to sellers.
So, in a seller’s market, these 5 tips will help you get what you want.
First impressions are key
Not only do you need to impress the sellers but you need to impress real estate agents as well. Hire one agent and let them profile your needs to the marketplace. Be specific about your what you want so you don’t waste either of your time. When you find the home you want, send the seller a letter along with your offer telling them why you love the home.
Get preapproved by a lender
Not only will you know how much you can buy you’ll be ready to make an offer quickly. Your agent can include the fact that you’re financially in the offer because it will go a long way with the seller.
Be realistic with your price range
In a seller’s market, you should look for homes within or slightly below your price range. This will give you some wiggle room to make full-price offers in the event of a bidding war. Trying to buy a home out of your price range in a seller’s market is pointless.
No home is going to have everything to your exact specifications. To get more for your money, try looking at an older home that needs renovation. Imagine it without the ugly wallpaper and stained carpet and visualize the home with better finishes. You might be able to get more living space in an established neighborhood than with a newer home that’s priced higher for the same amount of space.
Be ready to see a new listing at the drop of head. Be ready to make an offer when you find the right place. Once the seller has accepted your offer, proceed as if you’re in a normal market. Set a reasonable closing date that accommodates the seller as much as possible. Confirm the offer with your lender. Schedule the inspections you’ll need and don’t nitpick the seller over small things.
Whether you’re in a buyer’s market or a seller’s market you should feel good about the home you choose, the deal you make and the way you treat all parties.
Connect with one of our agents today to help you through.