Are you trying to purchase a property in a seller’s market? Finding, locating, and keeping a property can be extremely tough in this type of climate. Luckily, there are a few things you can do to secure the perfect deal once you do find that perfect property.
Not all of these simply involve putting in higher offers. Below, we give our 8 tips for buying a home in a seller’s market.
1. Arrange Financing Early
Having all of your finances in place lets you be act quickly when you find a property you want. If you are held up waiting for mortgage approval or end up working on budgets and moving assets around, the property will be sold.
Start by arranging all of your finances before you begin. If you have to get money from somewhere or move it around, then do this in advance.
Once you have this, work out your finances. See what you have for a deposit, and work out what you could pay every month on your mortgage. Once you have this, you can begin to shop around for lenders that have the best rates and seek pre-approval.
Pre-approval is the process of being cleared for a home buying loan before you find the property. You may also consider properties that have owner financing, in which the seller also arranges to lend the money not the house.
2. Be Flexible
Home buying in a seller’s market means moving fast, and a lot of this involves being flexible. If you can not make appointments to view properties or are late when putting in offers, then the property will probably have gone by the time you get around to it.
Make yourself available for viewings immediately. If you like the property and have worked out your finances, then you may consider making an offer on the spot.
3. Get a Real Estate Agent
When home buying, some people choose to avoid a real estate agent to avoid fees and commissions. However, an agent has all the inside knowledge and real estate tips. If a property comes on the market that suits your brief, it is inevitable they will know about it before you do.
This means they can connect you with properties and sellers before others see the property, giving you an advantage. Make sure you have a well-respected real estate agent who comes with recommendations.
4. Be Willing to Compromise
In a seller’s market, property moves fast. You may have an idea of your perfect home, with all of its features and the exact appearance or layout. However, that property may not even exist, let alone be available in a seller’s market.
You could wait a lifetime for that perfect home. In a seller’s market, the chances of finding it becomes even slimmer. Make sure you are flexible in your approach and are willing to compromise on a few features to get a property.
5. Get Personal in a Sellers Market
While it may seem that real estate is all business, it very rarely is. People invest more than just money into property, they invest love, care, and attention. That is why being personal can put you ahead of the pack.
Write a personal letter, tailored to each house on which you make an offer. In it, you should discuss why you want the house. Tell them what you love about the house, and how your family or plans fit into it.
It may seem a little twee, but it will work. If you come up against similar offers, it could tip the balance in your favor.
6. Pay in Cash
While this may not be applicable for all buyers, paying with cash still remains one of the strongest tips for buyers, particularly in a seller’s market. The absence of a lender makes the process of the sale much safer, as financing can not be withdrawn. For sellers, this is a huge advantage.
In addition to this, the whole process can be sped up. Without the need for a long finance process, all that remains is the sign-over of deeds and legalities.
7. Make a Great Offer
There are a number of real estate tips to make your offer more attractive than others, without increasing your overall offer price. The easiest of these is to be flexible with the closing date. This makes it easier for the seller to move on and out, which is useful if they are in a property chain.
You could also offer a much larger deposit than required. This should only be done if you really want the property. It will tell the seller that you are serious about buying and paying the money.
Finally, agree to the seller’s requests and demands, even if they do inconvenience you. For example, they may have a grand piano in the living room they don’t want to take away and expect to leave. In instances like this, acquiescing to their demands makes them more likely to accept your offer.
8. Know What You Want
Home buying in a seller’s market is also about knowing what you want. With so many homes on offer, it helps to know exactly what you do and don’t want. If you take time thinking about it, the properties may have gone before you have a chance to make an offer.
Create three lists. One should be essentials, that you can not move on. It may include particular areas to live in or the number of bedrooms. After this, create a list of things you definitely don’t want in a property.
The final list should be about the options you are flexible on, or willing to compromise on. Not only can this help you, but if you have a real estate agent it will give them a much better idea of properties to target.
Move Quick, Be Flexible
Essentially, a seller’s market means you have to be fast and flexible. Make the best offers you can, and adapt to accommodate the seller’s needs. By doing this, you will be one step ahead when it comes to getting that perfect property.
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