Whenever you are planning to buy a home, you need to have your best foot forward so your offer will be accepted. During a seller’s market, this is definitely a big challenge. Here are tips from USAA on how to purchase a home in a seller’s market.
Choose a sharp real estate agent.
This is particularly imperative when you are in a seller’s market. This kind of market sees more buyers than houses for sale. An experienced sales agent can help you navigate this battle and win. Choose a realtor who has proven their success in the neighborhood you are interested.
Get preapproved.
Getting preapproval before you start your house hunt will allow you to know how much you are able to spend on a home. Your offer will also look a lot better with a preapproval letter. A seller will know that you are a serious buyer.
Don’t be too choosy.
Currently, the inventory of homes is very low and this makes for a tricky home market for buyers. With this said, buyers do not have the luxury of waiting for the perfect dream home. If there are only three bathrooms when you want four, you might want to go for it. If you win the bid and get the home, you can always add another bathroom in the future.
Consider new construction.
If you started off looking for an existing home, but have come short, you might want to look at new construction. New construction might have more inventory for better prices in this market. A lot of times new construction might be further away from a city center so you might have to consider a further commute.
Stay alert.
It is a race against time and other buyers in a seller’s market so you cannot take your time. Be diligent and constantly watch the market. If you see a new listing that you are interested in, you have to act on it asap.
Forget the lowball tactics.
A seller will probably not even entertain an offer below the asking price in a seller’s market. In fact, buyers will bid over the asking price in this current market. This means if you really are interested in a listing, make your best offer the first time. It should be as close to the asking price or over the asking price.
Establish price discipline.
The ultimate goal is to win the bidding war, however, you do not want to overbid way too much. Before you even begin to look for a home to purchase you will want to set a firm limit on how much you are willing to spend on a home.
Put away your list of demands.
In a seller’s market, the seller has the advantage. It would not be wise to try to add a bunch of conditions to your offer. Making an offer with a contingency such as a sales contingency will not get you the house. You will need to go into the offer with flexibility. A buyer will need to accommodate the seller’s needs.
Consider waiting.
Letting the market cool down for a bit before purchasing a home might be your best bet. There are some negatives to doing this. First off, it is not easy to know what the future holds in the housing market. It could change in a month or take years for the change to occur.
Even in a seller’s market, you want to make the right decision. Do not feel pressured or hurry up and purchase a home you later regret. This is a big decision and has a longterm impact on your financial future.
