What Is a Seller’s Market?
Supply and demand…when more people are looking to buy than there are houses, it creates a seller’s market. The struggle for homes is severe and sellers will have the upper hand when it comes to negotiating. They will likely receive multiple offers above the asking price.
Tips for Buyers in a Seller’s Market
Flex to the seller
Be flexible on inclusions, exclusions and even the closing date. The more you accept the seller's wishes the more likely your offer will be accepted amongst all the offers you will surely be competing against.
Know your finances
When that perfect home comes into your sight, you will want to act fast. In a seller’s market, homes can be gone in a matter of hours. That means you need to know what you are approved for when it comes to a loan. That is, what’s the max price you can offer based on your cash in hand and the loan for which your mortgage specialist approved you.
Ignore the listing price
Some sellers and agents prefer listing homes at below-market prices to start up a bidding war. A low-priced property can generate enough interest for four to six offers because they know it's a good price. The price is then inflated, and you will pay more for the home than its value.
Don't fall in love.
Expect a bidding war, and the fact that you will probably lose the first house you offer on and maybe even the second home and go through the emotional pain of losing the house.
Buying a house in a seller’s market can be done cost-effectively if you know what to expect and how to proceed. Don’t let a seller’s market cause you to put off your home buying decision.
I hope you learned from these tips of buying a house in a seller’s market, so you are educated enough to act quickly once you’ve found one. Contact me for more information. You’ll be glad you did.