4 Strategic Moves for Home Buyers in a Sellers’ Market
In a market with limited inventory and lots of willing and able buyers, we find a hot sellers’ market. Once you’ve found “the one” and you’re ready to get serious, it’s time to get your game face on and beat out the competition. Here are some strategic tips that home buyers need to know when buying in a sellers’ market!
Don’t Waste Time
The real estate market favors those who can make quick decisions, especially in a sellers’ market. In other words, if you snooze, you will lose! Once a good listing hits the market, interested buyers should see it instantly. Don’t wait patiently for the open house. A more aggressive buyer will see it as soon as possible and even make an offer on the same day.
Invest the Time and Energy
Buying a home requires lots of time and energy. You need a good realtor advising you on top of a serious time commitment to watch the market and see homes quickly. You also need a good loan officer on your team to help you get pre-approved. Motivated sellers don’t like to wait for a buyer to get approved for a mortgage before a serious offer can be made or accepted. Sellers will also feel better if you are pre-approved for a mortgage before you see their home because they can start negotiating with you right away.
No home is going to be “perfect,” so expect to make concessions and price compromises. Remember that you are competing with plenty of other buyers in a low inventory market, so it’s important to be flexible. Older homes are going to have blemishes but will cost less than newer homes. Look beyond stained carpet and the outrageous paint colors. They can be easily changed. Just keep in mind that most buyers in competitive markets end up paying top dollar once they get in the middle of a bidding war.
Make a Strong Offer
If you want to submit an offer, make your contingencies and time frames swift, and take as much risk as possible off the table for the seller. If you need to inspect the property and have an appraisal, get it all done within days, not weeks. You could also have the home inspected prior to submitting your offer. Keep in mind that inspections pose the biggest risk or uncertainty in the eyes of the seller. If you inspect before you make the offer, you can make your offer not contingent on inspections. Your realtor will be in your corner to help you construct the best offer based on the situation.
Buyers in hot markets find themselves in competitive situations because they not only want what everyone else wants, but also what’s in limited supply. These strategic moves will go a long way in making you a competitive buyer in today’s sellers’ market! Think you are ready to jump in? Contact one of our loan officers today to get your pre-approval rolling!
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