Low inventory, high demand, and higher home prices means you have to make quicker buying decisions. And you’ll most likely have stiff competition from other home buyers.
1-Choose an experienced real estate agent. With a seller’s market, the competition for homes can be fierce. That’s why choosing an experienced real estate agent is so important.
A responsive real estate agent with proven expertise and an understanding of the marketplace is key to helping you negotiate and navigate a tricky real estate market.
2-Get mortgage pre-approval. Getting mortgage pre-approval before you start shopping for a home establishes your buying power. You’ll know upfront the price range you can afford buy; no second guessing.
Your offer will also have more credibility than competitors who did not take this step. Sellers will consider your offer more seriously because it shows you’re serious!
3-Make your best offer first. In a seller’s market, low ball offers will be rejected out of hand. Make your best offer first.
4-Forget About Counter Offers—There are no counter offers in a seller’s market. Owners are going to see multiple offers at one time. So, they can afford to be choosy. Make your best offer first!
5-Offer More Earnest Money—It’s common to make an earnest money deposit—money held in escrow—of 1% of the asking price. Let the seller know how serious you are by offering more cash in your earnest money deposit. This money is refundable if the sale doesn’t go through.
6-Offer A Valuable Contingency—Some sellers may accept your price provided you have a valuable contingency to offer. For example, a quick closing.
7-Maintain price discipline. If there is a bidding war on the house you think you have to have, it’s easy to get carried away. You may indeed get the house, but you may also get years of a strained budget. Instead, maintain price discipline. Know what you can spend and stick to it. Walk away, if necessary.
A couple more things--In a seller’s market, you cannot expect to deliver a list of demands to the seller. With a lack of bargaining power, you’ll want to think twice before adding conditions such as selling your home first.
Instead, be prepared to accommodate what the seller wants such as flexibility on the move-in date.
Lastly, the financial decision you make on buying a home will stay with you for many years to come. Don’t get carried away with the pressure to buy!
Keep a cool head and stay focused on what you can afford. That’s a decision you can live with comfortably when you do find the right house!
When you’re ready to close on your new home, turn to the pros at Lilly Title & Settlement Company in Staunton, VA. We’ve been helping buyers just like you get into their new home quickly and easily.