When you are attempting to buy a home in a seller’s market, you may encounter a lot of frustrating experiences… the home you look at may sell underneath you, you might not have time to sleep on any big decisions, you might miss an opportunity to attend a showing… all sorts of things can happen. While it can be frustrating, it can also be a good thing. Because a sellers market means that the community you are moving to is so great, everyone wants to live there!
A sellers market means that the market is better for the seller than it is for the buyer. That means more people are buying homes than there are homes for sale. This also means that sellers have the unique opportunity to price their home competitively, leaving buyers to compete with one another to make the best offer.
When you are in a season of a seller’s market, there are a few things that you can do as the buyer to get the edge on your competition. Below, I have compiled some of our best advice for you.
Get Pre-approved for financing
Before we begin working with families, we always advice them to get pre-approved with a lender. At the pre-approval, they will review your income, assets, and credit. Once you are pre-approved, you can then determine the price range of home that you can afford.
If you want to put an offer on your home, it is necessary that you have pre-approval letter from a lender. And so, by getting this done early, you are already one step ahead of game. It is just one less thing that you will have to worry about.Therefore, when you go to put an offer on a home, the home sellers are likely to take you more seriously than other offers that might be made.
Be prepared to make an offer
A competitive market means that you will have less time to make a decision about putting in an offer on a home. Make sure that you are prepared to enter into a quick-decision making process.
Before you go out looking at homes, have an honest conversation with you partner. Ask one another, if you see a house TODAY, are you willing to take make an offer TODAY? Because the market is so competitive, you need to make sure that you are willing to take the next step in the home buying process.
Be flexible with the results from your inspection
After an inspection, you have the option to ask the sellers to make particular fixes and adjustments to the home. However, in a seller’s market, you do not always have the upper-hand. Therefore, any problems that are found in the inspection may be up to you to pay for. By being flexible with the inspection, you ask less of the seller and have a better chance of your offer being accepted.
In the seller’s market, you might feel like you have a lack of control. But don’t get down! Prepare yourself for the reality of quick decisions and flexibility. The more emotionally prepared you are for this process, the better you will be able to handle the challenges that are ahead.
If you need help figuring out this seller’s market, be sure that you ask your realtor before you start looking at homes. We are always willing to answer any questions that you might have!