A competitive real estate market can be exhausting, especially for buyers.
Homebuyers negotiating a seller’s market face heated bidding wars and are often let-down when the property they were hoping to buy – within commuting distance and in a great school district, is lost to another buyer.
One may wonder as a homebuyer, is it really worth riding the emotional highs and lows – loving and losing a property? The answer is a resounding YES – but homebuyers must be prepared if they are to succeed in a seller’s market.
Homebuying Tips for a Seller’s Market
Begin As Soon As Possible
Quick-moving listings and bidding wars notoriously characterize a seller’s market. As such, homebuyers should start house hunting as soon as possible, move patiently through the process and act quickly when the right property presents itself.
If a homebuyer has a specific interest in a particular property, gather as much information about that property (even before it is listed), so you are ready to act. Because in a heated seller’s market, available listings wait for no one.
Be prepared to verify your mortgage pre-approval and evidence of funds required to close.
In a seller’s market, time is a homebuyer’s biggest foe; therefore, you want to be ready to pounce – or as they say be ‘offer-ready.’ Having these documents included with an offer strengthens the offer.
Simplify your Purchase Offer
Many purchase offers include contingencies – certain events that need to occur if the purchase is to close, like an inspection or a mortgage commitment. Sellers view contingencies as potential potholes – moments where their sale has a chance to fall apart. In this regard, cash is considered to be ‘king.’
Buyers may choose to waive contingencies in a heated market to make their purchase offer more appealing. However, homebuyers must understand that waiving contingencies will likely create additional risk, risks they must be willing to absorb.
Start with a Strong Offer
A heated real estate market leaves little room for gameplay. In other words, to set up the best chances of winning a bidding war, it is critical that a homebuyer put their best foot forward – by offering a fair offer price. In this regard, money talks.
A strong offer depends on the asking price and the buyer’s budget.
Personalize the Offer
When a seller is entertaining multiple offers – with similar terms – submit a short note, with your purchase offer, that explains why you want to own the property. This simple gesture may tip the seller’s decision in your favor.
Keep the note to the point (and a little flattery is helpful if you mean it!). The homebuyer’s objective is to let the seller know the emotional reasons they want to own the property.
Housing hunting in a heated market can be fiercely competitive and a bit discouraging. Choosing to be prepared is your best offense. Good Luck.