Struggling In A Tight Seller’s Market? Here Are Seven Tips For Successful Home Buying
The 2020 housing market might seem to be promising for buyers. The home prices are moderate, and the mortgage rates continue to be decreasing. On the other hand, unfortunately, the supply of homes for sale remains significantly slow. The choices of properties opening up are not where the jobs are, leading to less inventory where buyers are keen to invest.
All this data points to one simple fact. If you have to make a successful home purchase, then you have to be strategic. The chances of you walking into a house and finding it your dream home is not that realistic in the current real estate landscape.
According to industry experts, the key to a winning offer is knowing what is most important to the seller. Afterall, most of the things are ultimately negotiable, and that’s where you would need the ultimate agent. If you are looking to shop in a seller’s market, here are some tips that could bag you that fantastic home.
1. Start By Sorting Your Finances
Before rushing into finding a real estate agent, the first step for a buyer is to get their finances in order. Get your credit reports and look into the mortgage financing options to see whether you are in a position to but or how much you can afford. Many professional agents will only take you seriously if you show them the proof of funds.
2. Make Haste Once you Find the House you Want
In a tight seller’s market, it is imperative that you move quickly to buy the one you like. You might need to rush to open houses as soon as they are listed, and a top realtor from UpNest could help you with this. If you like the house, write an offer immediately. It could only take a matter of hours for the house to disappear from the listing.
3. Do Not Judge Only Based on Listing Photos
The adage “do not judge a book by its cover” in this case could be changed to photos. Houses that do not look that appealing in photos could still be great. You might want to set aside your home buying anxiety and look past the pictures. Houses with tenants still inside often render poor photos. Moreover, the neighborhood also plays a significant role in conveying the feeling of the home.
4. Do not Always Expect Repair
The more competitive the market is, the sellers are less likely to make repairs or opt for lowering the price if inspection reveals costly defects. While you can negotiate for repairs, there is no assurance that the extent of damage will convince the seller to make changes. You can only try negotiating. You should be aware that you are not buying a new home, and inspection is to understand the defects you will not know otherwise.
5. Start With Your Best Offer, And Leave A Backup Offer
When working with an agent, they will most likely inform you that a seller’s market might not always be the right environment to negotiate a bargain. You often get only one chance to make an offer, and you will certainly be competing with others. Your best bet is to come with the highest you can afford, including the financing package and terms of contingencies and closing date. Even if there is already a pending contract, do not hesitate to make a backup offer. Deals fall apart more often due to many reasons, and a good backup offer will put you in the next place.
6. Make A Personal Appeal
While some sellers focus on the money factor, there would be others who want to sell it to a family who will appreciate the house as much as they did. Including a personal letter, and a family photo might make your offer more attractive for some sellers.
7. Consider Shortening Contingencies
Many offers are conditional on the buyer getting a mortgage and the inspection. Wavering or shortening one of these contingencies, while risky, could be the right move in a seller’s market. By reducing the time, you can make the offer appear better to the seller.
You are sure to encounter some fierce competition out there. An experienced real estate agent should be able to guide you through the process. With the right dose of patience and avidity, you would soon be able to pack those moving boxes.
