How To Buy A Home In A Seller’s Market
Seller’s markets traditionally have more buyers than homes for sale. With less properties to choose from, homes sell quickly and sometimes for more than asking price. Buying a home in a seller’s market doesn’t allow you as much time to process your decision, nor does it leave much room for negotiation. Being well prepared will help you make the right decision when the right property comes up for sale.
To buy a home in a seller’s market:
1. Know Your Budget. A budget is different than a mortgage pre-approval. Your pre-approved amount is the maximum you can spend on a home to maintain maximum debt service ratios, while your budget also includes lifestyle considerations. Do you enjoy travel and entertainment? Are you or your children active in sports, arts or music? What are your retirement goals? If you maximize your pre-approved amount on a home, you might have to limit spending elsewhere. For some this is worth it, where others prefer added financial flexibility.
2. Be prepared to act quickly. Knowing your budget and how much you’re willing to pay when the right home comes up will help you to respond quickly and hopefully with less stress. Having a list of must haves and a list of negotiables also helps you know what you can or cannot go without.
3. Put your best foot forward. In a seller’s market, you may only get one chance at an offer. If the seller requests a 90-day possession, do your best to work with that. Asking for 30 days, especially in a multiple offer position could cost you the home. Depending on the property’s features, location and how many offers have been written, you might choose to offer more than list price.
4. Be prepared to push pause. If you’re not coping well with the intensity of this market, you could choose to push pause for a week or two. Taking a breather could offer the emotional stability you need to make the right decision when the right home comes available. Should this seller’s market continue for all of 2022 and you’re unsure about how high prices have climbed, perhaps you could push pause on a purchase until the market rebalances. A caution in doing so could be that we don’t know when a market peak will occur, nor how much inflation and interest rates could climb, so waiting too long could be counterproductive.
5. Lean on professional support. Hire an honest, local, professional Realtor. Hire a professional home inspector, mortgage specialist and lawyer. These individuals will help facilitate the buying process giving you better rates, protection, peace of mind, and make you aware of any pitfalls so that you can back away if you need to. If need recommendations, ask us!
The best thing you can do is find an experienced Realtor who knows this market well and can help to best position you for this market. Whether you’re a first time buyer, thinking about selling, or just want to talk about what options might be available for you, contact us today! We’d be happy to see how we can help you achieve your real estate goals!
Jason Rustand with RE/MAX Real Estate serves with the highest level of integrity and excellence every time. To talk to Jason about your real estate needs, contact him at 780-919-0004, email email@example.com or visit www.WeSellLeduc.com