The market is on fire! Homes are selling before even hitting the market, properties are selling over asking, and there are a lot of active buyers. The competition between buyers is very high, with some buyers driving around every day just looking for a coming soon sign. With so many motivated buyers, how can you stick out among the crowd? Here are 5 tips for buying in a seller’s market.
This is not the time to wait for the house of your dreams to appear on the market before visiting your bank. You need to be mortgage pre-approved with proof of funds available. You need to show sellers that you have the down payment ready.
2. Work With A Real Estate Agent Who Has A Plan
You need someone on your side who can guide you through the obstacle course that is this market - a real estate agent who is constantly looking at properties that are coming to the market and getting you in the houses first. You need the best on your team who can interpret the seller's needs and help you make an aggressive offer that works for both parties.
Window shopping is dead during a seller’s market like this. You need to know exactly what you want, where you want it, and for how much. This will help you narrow down your search and allocate your time to securing your dream home.
In a seller’s market, you cannot include a long list of contingencies. Most buyers right now are submitting offers without any, or significantly reducing their contingency periods. This tells the seller a deal is more stable and makes your offer much more appealing. When putting an offer together think about how much you are willing to pay on repairs and how flexible you can be on your closing schedule.
However, you need to feel comfortable with your offer. Do not put in an offer that just appeals to the seller. You could find yourself paying more for renovations than you realized.
You need to have a strong offer price. You need to be submitting an offer with your best foot forward. This is not the time to go in weak and hope for negotiation. With sellers receiving multiple offers, anything that falls below a certain point will be completely disregarded. You need to ask yourself “how much am I willing to pay?”
Typically we would also recommend that you write a “love letter” to the sellers explaining why you love their home and what buying it would mean to you. You should still write a letter but it will likely not make a big difference in the seller's decision. Right now the best thing you can do is be prepared to act fast. The early buyer gets the house!
If you need help putting your buyer plan in motion please reach out to us. We are ready when you are.
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