It’s great to sell a home in a seller’s market; buy buying can be a different story. Hopefully, you’ve successfully sold your previous home and ended up on top, so buying may not be quite as challenging as it could be when the market is not on your side as a buyer. But we can’t overlook some of the challenges to be faced in this situation. First, you’ll need to find a home during a time when they are going fast, and then you’ll need to beat out other homebuyers who want to make an offer on the same property you want.
Well-priced homes which are in nice condition will typically move quickly and often times will have multiple offers. So, if you want to purchase a nice home, you’ll need to be strategic! You’ll be wise to use an experienced buyer’s agent because finding your dream home by attending a handful of open houses or browsing online listings will not be enough during a seller’s market.
Here’s a Few Do’s and Don’ts….
Do get everything in order. This means everything! In a seller’s market, you can’t afford to let anything slip through the cracks. Get your finances in order, your credit, your documentation….have it all ready to go. So, when you decide to make that offer, you won’t lose out because you weren’t prepared.
Do move quickly! Often times, this means running out to view a new listing at a moment’s notice and writing up an offer immediately if you like the property. It is not uncommon for a home to be under contract within hours of hitting the MLS.
Don’t have unrealistic expectations regarding inspections and repairs. During times when the market is more competitive, sellers are less likely to agree to a list of repairs. However, it is possible they will agree to lower the price a bit if the inspection reveals moderate to major issues. Look at the inspection as a tool to give you more time to assure the house is what you thought.
Don’t lowball! During a seller’s market, it’s wise to start with your best offer. A competitive market is not the time to look for a bargain. Typically, you have one shot at making an offer. This is especially true when the sellers are receiving multiple offers.
Don’t skimp on your earnest money deposit! Sellers usually see a direct correlation between the amount of your earnest money and how serious you are about the offer.
Do consider making a back-up offer on the perfect house that may already have a contract pending. Deals fall apart every day! If you think you’ve found your dream home and it’s already under contract, you could be in the right place at the right time if the initial deal falls through.
For more information on maneuvering through a seller’s market, contact the Scherer Team at 888-300-4431.