Navigating a Seller’s Market
Buying a home can be exciting, but it also can be emotionally draining and exhausting.
Add in a seller’s market and buyers beware: this is about to potentially become a rollercoaster of nerve-wracking anticipation, disappointment and exhilaration! A Seller’s market can be very stressful for buyers. And trust me when I say it can be stressful for their agent as well.
What is a Seller’s Market anyway?
A Seller’s market happens when there is a shortage of housing compared to potential buyers. This results in power for the seller, so prices for homes are higher and multiple bids for these homes often occur.
The pandemic has affected all of us, and it has undoubtedly affected the real estate market. There are more buyers than ever, so being as informed as possible is an integral part of navigating this seller’s market.
Interest rates are incredibly low, so it is tempting to try to get into the housing market, upgrade, especially for first-time homebuyers in rental situations.
Preparing to buy a home in a seller’s market as stress-free as possible takes intentional steps. These are my five tips for optimizing your chances of homeownership in a seller’s market:
Be Ready
You will need to ensure your financing is pre-approved and arranged before a home purchase. With bidding wars, multiple offers and escalating house prices, it is critical to jump on board with likely no conditions. If you need a co-signer, make sure you have discussed clear decisions and how they will be structured, so you have clear boundaries to protect your home purchase and your relationship!
Check it out With Care
In a seller’s market often you will be required to present an offer with as few conditions as possible. I always recommend a house inspection, but if you cannot get that accomplished as a condition in your house purchase, try to conduct an informal check. If you can’t do that on your own during a showing, bringing someone along for your showing who has some experience and knowledge of home maintenance and renovations and can ask pertinent informational questions can provide an informal check.
Offer Closing Date Convenience
If you absolutely love a home and want to put in an offer during a seller’s market, one way to attract interest to your offer is to go with the seller’s preferred closing date. Preparing to clear your calendar and commitments to accommodate the seller’s closing date is a flexible way that won’t cost too much extra in the long run but could be the tipping point to your offer.
Simple and Clean Works
If there are multiple offers during a seller’s market, you want your offer to be as clear and clean-cut as possible. In addition to matching their closing date and offering your best financial offer, it is best to have no conditions and no additional requests in your offer. If you are the lucky buyer, you can perhaps negotiate those blinds or appliances later on in a separate, less complex negotiation.
Choose a Committed Realtor
Part of the preparation process to jump onto the housing market during a seller’s market is to have a trusted realtor on your team right from the get-go. A committed realtor will be working for you behind the scenes and will tenaciously keep you appraised of all upcoming homes with a strategy that is intentionally grounded in your best interests, not just beating out other offers. A trusted realtor will work with you to help navigate the market and ensure you present offers that align with your goals and support you when it becomes stressful or disappointing because of becoming out of reach.
Being a buyer or a seller during a seller’s market can be the COVID dream come true for you and your family. And definitely, you will be able to say you didn’t waste a pandemic. Make your dreams come true - reach out if you want to puzzle out how!