A seller’s market exists when multiple buyers compete for the same house, often within the first 12-24 hours of the property being listed for sale.
Are you ready to take the plunge?
Here are five things you can do to be strong in a seller’s market.
- Choose a Realtor® that you are going to work with! Having representation by a professional that has your best interest in mind is the smartest thing you can do. Don’t just go to the listing sales representative… They are under contract to get the most money and best deal for the sellers. Find someone you click with and that understands your personal needs. Be sure they are aggressive enough in a hot market to get the job done for you!
- Be realistic! Everyone wants to pay the lowest price. When you are buying in a seller’s market you have to be prepared to pay more than the asking price. Choosing the right Realtor® is your secret weapon.
- Get your financing in order. In a seller’s market, any conditions – including financing or selling an existing property – affects your competitiveness. Being prequalified for a mortgage and knowing what you can realistically afford is normally a must, but even more so in a hot market. Only look at houses you can realistically afford – besides the monthly mortgage payment, there are many other costs of homeownership, such as, property taxes, utilities and maintenance. If you only qualify for a $200,000 mortgage and your dream home costs $350,000 you will need to alter your expectations. Living above your means creates stress and problems that are unnecessary.
- Your Realtor® is your best advocate. He/she can help you know the best course of action. Sometimes it’s all about the money… that is, whose offer is the highest? Other things can affect whether a seller chooses your offer over others:
What are your conditions?
Do you need a home inspection or a financing clause?
You need to be sure you are protected but the more conditions you have the weaker your offer becomes (even if you have the highest price). Even helping the sellers have a feel for you as a buyer can help persuade them in your direction. A great Realtor® will help you navigate all the finer points that will ensure you are successful in purchasing the home of your dreams.
- Decide where you are willing to compromise. For example, are you willing to work with the sellers’ preferred closing date? Being flexible is a great way to ensure it is your offer the seller will choose.
Buying a home in a seller’s market is not for everyone. Regardless of the market conditions, a licensed Realtor® such as myself, can help you put your best foot forward. Let’s talk.