Buying a Home in a Seller's Market

by c21commonweath_ldowling 20. November 2019 15:19

Buying a Home in a Seller's Market

Imagine that you’ve already decided to move to a new city. You're ready to buy a home, but there's a problem: The city you're moving to is a hot market for real estate. You need a place to live, but is buying in a seller's market really a good idea?

 
In a seller's market, there aren't enough homes available for everyone looking to buy. Competition drives prices up and can lead to bidding wars. Fortunately, if you want to buy a house in a seller's market, there are steps you can take to increase your chances of a favorable outcome.
 

Get Started Right Away

When you're buying a home in a seller's market, there's a lot of competition. If you hesitate, there's a good chance someone else will close on the home you are thinking about. Be smart about things—still do your research and talk to a realtor, but remember that if you wait too long, you could miss out.
 

Include a Personal Letter

Sellers in a hot market are likely to get quite a few offers on their homes. As a buyer, making your offer stand out from the competition could make the difference between moving in and moving on.

 

One thing you can do to set yourself apart is write a personal letter to the seller. It doesn't have to be fancy or formal. You just want to express to the seller why you would be the perfect buyer for their home.

 

Start with a Strong Offer

When you're in a seller's market, it's not the time to make a lowball offer and negotiate to a final price. This is a near-certain way of losing a home to another buyer. A local realtor is your best friend in this situation. They’ll know the market and can help you decide on the right price.

 

Get Preapproved

Before you make an offer, make sure you're ready to follow through. Some buyers have the cash on hand to buy a home, but most of them need financing. If you'll need a loan, getting preapproved is an essential step. You’ll learn exactly how much you can spend and let sellers know that you’re serious.
 

Skip the Contingencies

If you're in a buyer's market, you have some power over the seller. Asking them to do a little extra to close the deal is reasonable. If you're in a seller's market, however, including contingencies will probably send your offer straight to the wastebasket.

 
When you're buying a home in a seller's market, you might feel like you're at a disadvantage. The good news is that sellers want to sell. With some preparation, good advice, and a little luck, you can get into the home you've been dreaming about.

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