When preparing to buy a home, a buyer may hear terms like “competitive market” or “seller’s market” get thrown around. But what do these terms mean for buyers? A seller’s market is what happens when there are more buyers looking for homes than there are homes for sale, creating a lot of competition among buyers to get one of the homes. As one can imagine, this can make buying a home difficult. However, there are strategies buyers can use to help improve their chances of buying a home. Here are some of the most effective.
Don’t Wait To Offer
In an ordinary market, buyers typically have time to deliberate if they want to purchase a home or not. However, in a seller’s market, this unfortunately isn’t so. Because there is so much competition, it’s possible for homes to last as little as a day on the market before accepting an offer from a buyer. For this reason, all buyers should be prepared to make a decision quickly when they are attending a home showing. The sooner the buyer decides, the sooner their agent can submit an offer or they can move on to the next home for sale.
Don’t Expect Perfection
It’s always helpful for home buyers to have a list prepared of home features that they want and home features they can’t live without. However, in a competitive market, it will be difficult to find a home that meets every want and need. Buyers can’t let themselves get caught up on little things or they’ll never find a home, so when viewing homes, it’s important for buyers to focus on what they absolutely need. Does the home have accessibility problems for disabled homeowners? Is the home part of the wrong school district? These are things home buyers should be focused on.
View Homes Quickly
In a seller’s market, a home that is listed on Monday can possibly be gone by Tuesday. If buyers insist on waiting until the weekend or until they’re in the right mood to go house hunting, they are likely to miss out on many of the homes for sale. In order to have the best chance of buying a home, buyers should always be looking out for new listings an arrange with their real estate agent to have a showing as soon as they can, even if it means going to one straight from work when they’d rather be at home.
Put in the Best Offer Possible
A buyer’s offer is the key to purchasing a new home, so it’s important for it to be the best it possibly can be. It can be tricky to make an offer stand out in a seller’s market, but there are ways to help ensure that it outshines the competition. Here are some different strategies buyers can use in their offer:
- Include an escalation clause to try to beat out other offers.
- Write the homeowner a personalized letter about how wonderful the home is.
- Offer as much cash as possible.
- Be pre-approved for a mortgage.
- Offer to work on the seller’s schedule.
- Keep contingencies to a minimum.
These may seem like small details in the grand scheme of home buying, but including these can greatly improve a buyer’s chance of having their offer accepted.
Buying a home in a Henning Ridge competitive market can be tricky, but it isn’t impossible. Following these four strategies can help buyers stay ahead of the competition so they can emerge victorious, even in the most competitive of seller’s markets.