In a seller’s market, you’ll have to be quick and effective when it comes to buying a house.
Buying homes in a seller’s market can be stressful because there aren’t many homes for sale, so owners can list them for whatever they’d like. However, this doesn’t mean that you have to settle with an overpriced house.
When buying in a seller’s market, you’ll need to use several strategies to find homes for good deals and ensure you can buy one. There will be plenty of others trying to buy the same homes, so you’ll need to get ahead.
Keep on reading to learn several strategies to help you buy a home in a seller’s market!
Start As Soon as Possible
One of the first things you’ll need to do is start looking for homes as quickly as possible. The problem with buying a house in a seller’s market is that the homes typically aren’t available for long. This means you’ll have to find something you like and start working towards finalizing a transaction.
If you’re interested in a home, find out as much information about it as you can. You’ll want to look for open house dates, property reports, and offer due dates. From there, you can come up with a strategy to close in on purchasing it.
It’s best to do this with a realtor because they can quickly find all of the info for you. Depending on the home, you may be able to set up a private tour with your realtor.
Get Pre-Approved and Prepare Your Proof of Funds
When buying a house, you’ll want to show the owner that you’re financially eligible to purchase it. You can do this by getting pre-approved on a mortgage and providing proof of funds. Owners will want to see this info because they don’t want to waste time with someone that isn’t serious about buying.
You can get pre-approved by visiting a bank with documents that show your income. They’ll check your credit score to see how much you’ve been borrowing, so bring documents related to any loans you may have.
Getting a pre-approval will give you a good idea of how much you’d be able to borrow for a house. It’s best to do this before you start house hunting so that you can narrow down your choices. When you’ve gotten pre-approved, bring the documents with you whenever you meet with an owner.
Make a Simple Proposal
Most buyers propose a deal with several contingencies that can slow down the selling process. Owners don’t like to get caught up in these deals because they consider it a high risk of having the deal fall through and wasting their time. Instead, you’ll want to make a simple proposal with little to no contingencies.
It’s okay to have one or two contingencies. For example, you could require a home inspection before finalizing the transaction. However, including a plethora of them will do nothing but encourage the seller to look for another buyer.
Think about the things that mean the most to you and include them in your contingencies. Keep in mind that if you don’t include any, you’ll run the risk of getting a home with underlying problems.
Offer a Great Deal
If you want to make a fast home offer that will guarantee you get the house you want, you’ll have to offer an enticing amount of money. In a seller’s market, sellers can value their homes higher than they normally would because buyers have fewer options.
Making a low offer on a house will do nothing but result in you getting ignored by a seller. You’ll need to offer to buy a house for a value closer to the one they’ve listed it for. You can negotiate and go a bit under to make it more affordable for you, but don’t expect to pay much less than what they’ve valued it at.
Most sellers will list their homes higher than what they expect to get. If you have a certain number in mind, try to offer lesser than that so you can negotiate and meet in the middle. Be prepared to make a backup offer on the house if they’re unwilling to take your original offer.
Write an Offer Letter
An offer letter isn’t something that many sellers do, but it can make a major difference in a seller’s market. Writing an offer letter shows that you have a lot of interest in a house. You’ll have a higher chance of closing in on a deal if you write one because it shows that you’re serious about buying.
Within your offer letter, write about why you think you’d be the perfect buyer. This will help you if the buyer is struggling to decide between several offers. You don’t want to flood the letter with too much, keep it short and sweet. The goal behind an offer letter is to connect with the seller emotionally.
Now You’re Ready to Buy in a Seller’s Market
When real estate in your area becomes a seller’s market, you’ll know what to do when you want to buy a house after reading this article. Providing that you follow these tips, you won’t need to ask yourself, “Should I buy in a seller’s market?”
Buying a seller’s market will require you to spend more money, but you can get the home you want, and for a reasonable price. We recommend you start by getting pre-approved for a mortgage so you can get a good idea of how much you can afford.
When you’ve found a home you’re interested in, schedule an inspection with us.