Buying a home already has its challenges
but when you’re
trying to purchase a home in a seller’s
market, it becomes significantly more difficult. It’s important to make sure
you’re
working with a trustworthy real estate agent who knows what they’re doing. In this blog, I’m going to share my top 5 tips for buying in a seller’s market.
#1:
Get Pre-approved
Making sure you are pre-approved for a
mortgage before you start looking for homes is very important. It essentially
gives you the knowledge of how much buying power you have. Taking this first
step will make your offer a lot more credible than your competing offers if
they didn’t take this initial step.
#2: Be
Ready to Bid
Always start out with your best offer
and don’t
even consider low balling it in a seller’s
market. If your first offer price doesn’t work out then give your second-best
offer and prepare yourself for it may not be your last. Acknowledging you are
in a seller’s
market is crucial because it prepares you to search for homes that are a little
less than your price range. This gives you the advantage if you ever find
yourself in a bidding war.
#3:
Don’t
be too picky
Prepare yourself to adjust some of your
expectations and wants. Try to make exceptions to things you can change in the
future that won’t
be too costly or difficult. It is better to buy the perfect sized home in a
safe location instead of losing the opportunity because the kitchen and
bathrooms weren’t quite up to your satisfaction.
#4:
Stay aware
If you decide to buy a home, be prepared
to be available as much as possible until you find the home you want. You must
keep a constant eye out for new listings.
If you are interested in a home, then set up a visit as quick as
possible. Also, be prepared to make quick decisions in order to outbid other
buyers. Establish price discipline and determine how much you are willing and
able to spend on a house prior to looking.
#5:
Consider waiting
If possible, you may want to postpone buying a home until the market calms down. While it is very hard to predict when the market will shift back to “normal”, it is important to not get carried away during the buying process. Buying a home is a long-term commitment for your financial future. Sometimes it is better to wait and be comfortable with your decision than to do anything impulsive.
