Seller’s Market? Here’s What to Expect
You’ve probably heard the term seller’s market, but you may not be aware of what that is. Knowing this term can be important if you’re trying to buy a house in a market condition that favors the seller. Stay competitive when you shop for a home to get the property you want in a seller’s market. Here’s what you need to know.
What Is a Seller’s Market?
A seller’s market occurs when there are more buyers than homes for sale, which means buyers must compete against one another. A seller’s market can be tough, especially for new buyers who often have less money to put down and a lower income than more experienced buyers.
How Can Buyers Compete in a Seller’s Market?
Make your offer stand out in a seller’s market by following these tips.
Before you ever enter the real estate market, get pre-approved by a lender. A lack of pre-qualification puts you in a weaker negotiating position, and you may find yourself getting shoved out of bidding wars by buyers who have been pre-approved. In addition, if you’re pre-approved you’ll have more certainty that you’ll be able to get a mortgage when the time comes.
Make the First Offer
Sellers who are in a hurry may accept the first offer that comes their way, even if they think they can get more money by waiting. In addition, if you get your offer in before others, the seller won’t be able to compare your offer to others, which can put you in a better position.
To make the first offer, see new homes as they enter the market. Check the listings daily and go out to see homes as they become available.
Know What You Want
It’s easier to make fast decisions when you know what you want. Make a wish list of priorities, then note which priorities each home fulfills. Once you’ve seen several houses, you’ll start to know which homes you like best.
Make Your Best Offer Up Front
Do not try to negotiate for a better deal. Negotiating makes room for other buyers to make better offers. Instead, make your best offer first. If you find yourself in a bidding war, you may have to back down, but putting down your best offer up front may squash your competition.
Shop in Your Price Range
You probably already know how much you can afford to spend on your house. As you look at listings, you might be tempted by nice pictures to go see homes that are out of your price range. In a seller’s market, this is usually a waste of time. Know how much you can spend and stay in that price range. You’ll be in a much better position to make a good offer if you try to buy a house you can afford.
Find Out What the Seller Wants and Offer It
This stage is where a real estate professional comes in very handy. Have your real estate professional contact the realtor representing the seller, then find out what the seller wants.
If the seller would like to keep the appliances, would like a longer escrow period, or if the seller wants to sell the home exactly as is, you can include those details on your offer. Small touches like this make your offer look better than other offers, and you may be the buyer that stands out.
Want to know more about how to buy a house or get an appraisal? Contact Charles L. Moles Real Estate LLC. We’ll be happy to answer your questions and put you on the track to buying a home.