When buying a home in a seller’s market, the challenge lies not just in finding the right one, but in beating out multiple offers from other buyers who also have their eye on the property.
Don’t let competition keep you from purchasing the home you want. Here are ways to navigate a seller’s market:
- Know what a seller’s market is
A seller’s market is characterized by low inventory and high demand. There are fewer homes for sale and a disproportionate number of buyers who want to get their foot through the door. A balanced market is characterized by a six-month supply of listed properties; a tight market has less than the ideal number.
In a seller’s market, those who wish to unload their property have more leverage than buyers do, and the competition is strong among multiple buyers vying for the same property. Knowing how a seller’s market works will give you an idea of how to go about the buying process.
- Get your finances in order
Get your credit reports and shop around for mortgages several months before you go house hunting. This lets you know whether or not you’re in a financial position to buy a home. Before you attend open houses, secure a pre-approval letter. It indicates to realtors and sellers that you’re serious about making a home purchase and that you have the capacity to do so.
- Hire a Realtor
There’s no substitute for professional guidance, especially when entering a highly competitive market. Sellers are less likely to make concessions in a market that favors them, and chances are they have several offers waiting in the wings. A Realtor knows when and how to negotiate, increasing the chances of you securing the deal.
A good Realtor will also offer you additional real estate options. Buyers often approach agents with a list of homes they’re interested in, and while this is a great starting point, experienced agents can suggest other properties based on a potential client’s home preferences and lifestyle.
- Be strategic
You need to be more deliberate when house hunting in a seller’s market. Casually going to open houses and relying solely on online listings might not be enough. Be very selective about which homes to view and maximize your time. Set a schedule and stick to it. You might also have to re-evaluate your wants and needs, since tight markets often have low inventory.
- Move quickly
Homes sell fast in a seller’s market – especially when the property is in excellent condition. That’s why you need to be decisive and move quickly. If the property happens to tick many of the boxes on your wish list, be ready to present an offer or a down payment during an open house. Don’t vacillate. Otherwise, you might end up losing the home to another buyer.
- Craft a strong offer
When bidding on a home in a seller’s market, your first offer should your best offer. Pull out all the stops – whether you decide to pay slightly above the asking price, shoulder the closing costs, or include fewer contingencies. You can also include an escalation clause, such as one that states that you’re willing to top the best offer that the seller receives.
Buying in a competitive market? Call the Zanthia Hastings Team at 704-947-2165 or send an email to firstname.lastname@example.org.