Homes aren’t selling as fast as they used to and as a result home prices are starting to creep up again, and it’s becoming more and more of a seller’s market. So as the market changes, it’s time to change strategies. In a buyer’s market the buyer has the advantage and can make more requests or demands of the seller but in a seller’s market the buyer no longer has the upper hand and may have to bed to the seller’s terms.
As housing becomes limited, buyers don’t have the ability to take their time, nit-pick things that need to be fixed or replaced or shop around with other real estate agents. These five tips can help you get by in the current seller’s market!
It’s extremely important to make a good impression, not only on the homeowner but also the real estate agents. Hire an agent an let them assess your needs of the market, make sure you’re detailed about what you need so you don’t waste your time or the agent’s by looking into homes that don’t fit your criteria. When you find the home you want, send a letter to the seller with your offer and an outlining of what it is you love about the house. This will make the seller’s remember you while giving them a good impression.
Before you start your search make sure you’ve already been preapproved by a lender. When you’re preapproved you know exactly how much you can offer on a home, but you can also make an offer faster than someone who has to wait for lender approval. This can speed the home buying process immediately and will keep other buyers from swooping in with another offer.
Shop Within Your Budget
Make sure you stay within your price range when you’re shopping for your new home, try to stay in or slightly below your price range. This will give you more space to give more offers at full price or allow you room for upping the offer just in case there are multiple perspective buyers and you’ll be able to pay closing costs. Attempting to buy out of your price range in a seller’s market will only cause frustration for you and your agent.
Make sure you aren’t too picky about getting every single thing on your list. You may have to get an older that needs some renovation. You may have to repaint a few rooms, peel wallpaper off, or replace the carpets to get the perfect home. You might be able to get more space to live in an established neighborhood than a newer home at a higher price of the same square footage.
Be ready to see new listings with little to no notice. Make sure you’re ready to make an offer the second you know that a house is right for you. Once a seller has accepted the offer, move forward like you’re in a normal market. Set a realistic closing date that takes the seller into consideration as much as possible. Confirm your offer with your lender and schedule all the necessary inspections. Make sure you don’t make a big deal of small issues that can be easily taken care of.
No matter what the market is like, you need to feel good about the home that you pick and the deal that is made.
If you’d like to start your search, contact Karsten & Associates to get the process started!