The housing market is on fire right now, but for sellers. This is because the demand for homes is high while supply is low. Shopping for a home can be difficult in any climate, but when it’s a seller’s market, it is especially difficult. Buying a home in this market is not impossible, but you definitely need to bring your A-game. Here are a few tips to surviving a seller’s market.
Commit to being on call
In our current market, things move fast. If you are serious about buying a home, it needs to be your priority. If you’re fitting house hunting in on the weekends or when it is most convenient for you, you’re wasting your time. Treat this as if it were your job and if someone calls about a viewing, meet at their earliest convenience not yours – and follow up promptly.
Show up with paperwork not promises
Talk is cheap in hot markets. In order to be taken seriously as a buyer, you need to show proof that you can afford the home by showing your pre-approval letters. This way the seller knows your mouth is where your money is.
Waive the what-ifs
Many offers are placed on contingencies, such as they’ll buy the home if the inspection goes well or if they can obtain financing. Be open to dropping a couple of these contingencies.
Don’t play hardball
In a traditional market, the buyer can put in an offer below asking price and then negotiate from there. In a seller’s market, there is no room for price negotiations. You’ll be wasting your time by putting in a lowball offer. Now, don’t go and blow your budget on your offer. Bid strong, but don’t financially overextend yourself.
Widen your search
In a seller’s market, it’s not unusual to feel that your favorite neighborhoods are overpriced. This just means you need to widen your search to other up-and-coming neighborhoods. Even in a seller’s market, homes still sit for extended periods of time. This scares off buyers because of potential “flaws,” but sometimes those flaws are simply that the home is actually an extra 15 minutes from the beach. Be prepared and open minded to all possibilities when buying in a seller’s market.