The Keys to Successfully Buying in a Seller’s Market
Being a buyer in a seller’s market can be tough. Here’s how you can accomplish your goals more easily.
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It’s tough to be a buyer right now in our aggressive seller’s market. The best houses are receiving multiple offers and selling within days. In the $150,000 to $300,000 price range, the market is especially aggressive. So, how do you compete as a buyer?
It all comes down to preparation in a number of different areas. Financial preparation is the first thing you should focus on. A pre-approval from a mortgage officer will go a long way in assuring the sellers that you will be able to finance the purchase.
You also want to be prepared to make an offer when you find a home you like. There are so many buyers out there that prices are getting bid up. In many cases, sellers are getting more than 10 offers in just a few days. That being said, be prepared to pay over list price. I’m not saying you should overpay because you shouldn’t. However, you need to do your research ahead of time with the help of your agent to determine what kind of offer is fair for this property. If it happens to be over the list price, so be it.
If you are going to offer over list price, keep in mind how much money the seller will actually take home. If you’re offering $205,000 on a $200,000 home but you’re also asking them to pay for $5,000 of your closing costs, that’s not really an offer over list price. If you offered $210,000 and asked for $5,000 in closing costs, then you would be making an offer over list price in the seller’s eye.
Another important thing to know in this market is that price isn’t necessarily the best way to make your offer stand out. If you offer more earnest money or a closing date that the seller prefers, those are both ways to distinguish your offer in the mind of the seller.
Those are just a few things you can do when competing for a home in a seller’s market. If you have any questions for us or would like more tips on how to craft a great offer, don’t hesitate to give us a call or send us an email. We look forward to hearing from you.