Tips for Buying in a Seller’s Market
There is no doubt we're in a seller's market with inventory at a record low. Demand is strong, and prices are on the rise. Buying a home can be challenging to navigate. Real estate is a commodity, and a home is worth whatever someone is willing to pay, ultimately... But that doesn’t mean you don’t have a say in the matter; Nothing is impossible, but if buying in 2021 is on your radar, let's connect! Creativity is the ticket to the winning offer!
Get pre -approved. By obtaining mortgage pre-approval before you start home shopping, you'll know how much buying power you have. Your offer will have far more credibility than competing offers where buyers didn't take this step. Word to wise; you live in the payment, not the price!
Move quickly. In a buyer's market, you might get away with taking a leisurely approach to your home search. That's not going to work in a seller's market. Keep a constant eye on new listings and set-up showings asap. Showings should be a quick verification of condition rather than the crux of your decision. Successful buyers will be 99% certain of their intent to write an offer prior to physically seeing the property. Remember, your competition is known to write offers sight unseen.
Be Flexible. When housing inventory is limited, you probably need to redefine what your "perfect home" realistically means. Prepare yourself to adjust your expectations. Focus on the big picture and ask yourself: Can this home become a perfect place for me and my needs? For example, you can add a bathroom someday, but you can't change the home's location or lot size.
Put your strongest foot forward, first. If you are interested in a house, make your best offer out of the gate. The goal is to be the first to the table with your BEST offer. Being quick and assertive can win you that dream house.
Make your offer standout. An offer isn’t all about the purchase price, and other non-price factors excite sellers. Things to consider; waiving the financing contingency, limiting inspection from the typical 10 days down to 3 or 5 days, placing a larger amount of earnest money, and lastly, be flexible with the seller's requests for a closing date.
Have cash. If you have extra cash, this may be a good time to use it. Most people don’t have enough cash to buy a house outright, but if you can, great! Eliminating a bank can certainly help, and sellers love cash offers. Many buyers who pay cash for their homes will often refinance, referred to as a cash out refinance, so their cash isn't entirely tied up in their home.
While these tips may seem small, they can go a long way in making your offer stand out and award you the home of your dreams. Make sure you work with a motivated agent that has your best interest in mind. Remember that a home decision has a long-term impact on your financial future. Reach out and we can talk about using any or all of these tips to help you stand out from your competition and secure the purchase of your home!
