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Things buyers need to know in a seller’s market:
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What is a seller’s market?
A seller’s market in real estate is when there is a higher demand for homes than supply of homes for sale. When there is a low inventory of homes for sale, you will find several buyers competing to buy the same property; which drives up the price. This means that buyers will have to spend more to get what they want.
Tips to keep in mind:
Get a mortgage pre-approval
With a pre-approval you have given your lender everything they need in order to ensure that you qualify for a loan, and for the amount you have requested. In a seller’s market, you want to make sure that you have a flexible lender. Submitting a pre-approval letter communicates to the home owner that you are actively seeking a home loan.
Work with SV Real Estate
Having a smart realtor at your disposal gets you vital information on the activity of the home, help set up appointments to see the home, knowledge of multiple offer situations, and guidance through the best decisions of your offer.
This allows for a head start in knowing what homes are selling for around your desired destination, guiding you to what price to offer. Whether over the internet, or a drive by, research the home and its surroundings to ensure it is what you’re looking for.
Stay within your budget
This includes separating needs from wants. Make a checklist of your needs. Now is not a time to low-ball to get what you want. You need to expect that you will pay full asking in this type of market.
Have flexible timing
Some sellers need to move ASAP, and some sellers need extra time to move out. Flexibility puts you ahead of competitors that are also submitting offers. Even allowing the sellers to rent from you as they move into their new place can go a long ways.
Cash is king. The more cash up front, the more serious you appear to the seller. Make sure to make the seller aware if you are opting to make a big down payment.
Build a relationship with the seller
Whether it is complimenting the seller on their job on the upkeep of the home, or a hand written letter to go along with the offer, building a relationship and being personable is important.
Look at the potential of every home
Some homes may be overpriced, and some may not look as pleasing to the eye as they could. But, it is important to look at each home’s potential, and even consider a fixer upper. What would the home look like with some freshly painted walls or some new flooring, you may not have to bid against other buyers.
Don’t buy a house you don’t love
Never settle. Although you may need to make some compromise on some wants, make sure it checks of your needs. Buying a home is a big deal, and unless you put a big down payment down, you may have to live in the home for a while before you build equity up. Make sure you love the home. But remember there is a time for due diligence. If you feel the home is for you, don’t be afraid to submit your offer.
Decide whether buying now is right for you
You may need to write a bunch of offers before one is accepted in a seller’s market. If the stress that goes along with a seller’s market is not worth it to you, then you should choose to continue renting until more homes become available.
Buying in a seller’s market is not for everyone. Using the tips above can help you get in a home now if need be. Just remember to select SV real estate to ensure a smooth home buying/selling experience.