6 Tips to Buying a Home in a Seller’s Market
Posted in: Home Sweet Home
By Solarity on August 9, 2018
If you are looking to buy a home in the near future, there’s good news. The current seller’s real estate market still provides buyers with some advantages. There is leverage in every market.
And though you may be hesitant to buy in the current market, we have a secret for you: sellers are buyers, too.
Sellers want to sell their home quickly so they can move into that dream house. Most sellers prefer to avoid a long, drawn-out selling process, so the interested buyer holds a little (ok, sometimes a lot) of sway.
6 Tips for Buying a Home in a Seller’s Market
To buy smart in a seller’s market, you need to keep it simple and take note of these six tips to have a game plan before you go shopping for a home. After reading these tips, you will see that the market waters are moving fast, but you can navigate them if you have the know-how.
1. Get Pre-Qualified for a Home Loan
If there are multiple offers on the table, a seller will accept the one that is most likely to go through without pause. If you don’t make an offer with proof of financing, your offer will probably be the first to be dismissed. To have evidence of financing, you need to get pre-qualified for a loan.
A pre-qualification lets the seller know you are set with financing and can proceed to the next step. Without a pre-qualification, another buyer has a window to swoop in with a cash offer or an offer with proof of financing. You will lose purchase power quickly, and they will win the bid.
2. Be Ready to Make the Offer
If you have already been pre-qualified for a home loan, you have done yourself a solid. By having a pre-qualification before you shop, you narrow down the market of available homes and equip yourself to stay within your budget. Before you arrive to view the house, you can have a plan for what kind of offer you will make if you like what you see. Time matters in a seller’s market.
3. Keep it Simple and Shop in Your Budget
As we mentioned above, knowing what you can afford makes a world of difference in a confident offer. You don’t want to put in an offer on a home that is at the top of or outside of your budget. That kind of approach will give you no wiggle room if they counter your offer. With that in mind, you want your bid to be the best they have received, with the flexibility to go up if they counter, asking for more money.
4. Write an Attractive Offer
You can buy smart by writing an appealing offer that the seller can’t resist. To do so, you need to have a plan before you make your offer. Sellers are attracted to straightforward bids that are promising. A promising proposal includes a cash offer or pre-qualified buyer. When you come in ready to buy on the spot, they know you aren’t there to play with their emotions, and you are prepared to buy their home.
5. Every Dollar Counts
Make your offer stand out by offering them something that doesn’t cost either of you. For example, provide the sellers more time to move out after closing. Everyone hates the rush to move after closing. Most buyers wouldn’t think to put that in their offer, so that helps yours to stand out. It is even possible to rent to a seller for a few months. Be sure to have a plan in case you cannot occupy the home directly after closing.
6. Have a Backup Plan
If you are selling your home to buy a new home, you need to prepare for some time between closing a home and purchasing a home. Many times you can’t get into the new purchase as quickly as you settle on the house you are selling. So start looking at rentals or give some friends a call. In a seller’s market, your home can sell quickly. You need a plan for where to move if you can’t buy another house immediately.
For you to save money, you need to be patient and find the right home. Take a metaphorical offensive move to remove the stress of “where are we going to live.” A backup plan will relieve you of an immense amount of pressure and help you find the perfect home.
Make arrangements with family and friends so you don’t have to pay money to be in a hotel or sign a lease that will be expensive to break. You can also save by finding an Airbnb near the area where you are looking for a home. In many cities, Airbnb is cheaper than commercial lodging.
Ready, Set, Go
We hope this blog gives you the confidence to write an offer the sellers will be happy to accept. You can be one of those buyers that scores the house of their dreams with money to spare. Don’t be intimidated by the market. There are always deals; you have to be on the lookout. Taking advantage of those deals isn’t art; it is just proper planning and intentionality.