High demand to buy a home and a low supply of homes available to buy has made this market lean heavily in the seller’s favor. Buyers have become frustrated because homes are selling before they can see them or they are losing out in multiple offer situations. Here are 6 tips to help you be more successful in a seller’s market.
1) Work with a professional
There are so many variables and strategies to navigate through in the home buying process that it makes the most sense to work with a Realtor who is experienced and a good communicator. Trying to do it on your own in such a fast moving market will most likely leave you frustrated, exhausted, and unsuccessful.
2) Understand your Financial Status
It is best to know your financial boundaries and set up your expectations early to avoid disappointment in the future. Being pre-approved for a mortgage and getting estimates on your monthly payment will help you know the correct price range you should be searching in. An additional tip is to search for homes $10,000 to $20,000 below your top price range. Multiple offers are very common in today’s market. Usually the winning offer is one that is above the list price. It is tough to be in a multiple offer situation on a home that is already listed at the very top of your price range.
3) Prioritize What you are Looking for in a Home
Think about, discuss, and write down the things you want in a home. Then put them in “Must have” and “Would like to have” categories. As you search online for homes and see the choices, you may need to make adjustments to your categories to reflect the type of home you can buy in your price range.
4) Be Ready to Act Quickly
Homes are selling fast. Often times offers are coming in on the first day it hits the market. You should monitor your online search daily, be ready to go look at a home the first day it hits the market, and be prepared to write an offer right away if you want to buy the home. Completing steps 1-3 will help make it easier to act quickly.
5) Make a Strong, Clean Offer
When you find the right home, make your offer as appealing to the seller as you can. Come in with a strong price. If it is a multiple offer situation you will most likely need to offer significantly over the list price to be the winning offer. Limit your conditions and add ons. Be flexible on the closing date or let the seller pick the date. Consider writing a letter to the seller explaining what you love about the house and how you could see yourself living there. This will help personalize your offer and help it stand out from the other offers.
6) Have the Right Mind Set
Getting your expectations lined up with the true conditions of the market can help you avoid surprises and emotional roller coaster rides. If you use the above listed steps, you will become more informed and prepared for the home buying process. This will ultimately help you get the home that you want.