So you’re thinking about buying a home or already in the process? Well if you find yourself in a seller’s market, you’re going to want to have a strategy to give yourself the best chance of getting your dream home. The buyers market will be extremely competitive due to reduced inventory, meaning more buyers are going after fewer homes. Here are something’s you’ll want to keep in mind while on your search.
No matter what market you’re trying to buy a home in, cash will always be king. However, if you’re unable to buy a home with cash, make sure you’re pre-approved. It’s not enough just to be prequalified. Pre-approval goes far beyond pre-qualification and makes sure you actually have the capacity to buy the house. A pre-approval forces you to submit all your paperwork to the bank and in return the bank tells you how much you can afford. This is a major advantage when submitting your offer. If a seller has to pick between competitive offers from someone who is pre-approved and someone who is prequalified, they will most always accept the offer from the pre-approved buyer.
There’s no telling when a home will come up for sale. Realtors will sometimes hold a listing back until Friday to make sure they get ample traffic from weekend buyers. However, this is not always the case and in a seller’s market you’ll need to be flexible anytime a listing comes on the market. Don’t just look at homes on the weekend. Waiting until the weekend may result in the house already being sold.
Buyers are always trying to get the best deal possible. However, in a seller’s market this could leave you high and dry. Offering a low price will almost certainly take you out of the running for a house especially if the sellers receive multiple offer. For this very reason, if you find your dream home, be sure to make your strongest offer.
Be prepared for the potential of your search dragging on longer than you want. Failure to do so will leave you frustrated and you are more likely to do something based on impulse. Chances are your frustration won’t last but your mortgage will. Don’t go above your budget just because you are getting impatient. Instead, find your price range and stick to it.
Never been in a bidding war? Well get ready, especially if you find a fairly priced home. Buyer’s often are not ready for what a bidding war may bring and can even stretch their budget. The best idea is to look for a home below your budget which will leave you some extra room just in case there are multiple offers on that home.
Seem old fashioned? It works. Many sellers have a personal connection to their home and want to make sure the person they are selling to has the same connection. If you fall in love with a home, include a personal letter and a family photo with your offer. It will not guarantee you the home, but it is sure to give you a leg up on the competition.