When housing industry professionals discuss the market, they often describe it in terms of buyers and sellers. A buyer's market entails that supply is high and demand is low while a seller's market indicates a greater interest in homeownership and not as many properties available to sell, according to Redfin.
A buyer's market works in your favor if you want to invest in a new home. However, if you want to buy in a seller's market it can be a bit trickier.
Enlist the help of a real estate agent
Navigating the homebuying process can be difficult and when the cards aren't necessarily stacked in your favor, and you will likely want to consider hiring a housing professional with experience in both buyer's and seller's markets. Realtor.com emphasized the importance of finding an agent with significant experience who knows the area you want to purchase a home in.
Zillow also noted having a real estate agent on your team can help ensure you don't waste time writing multiple offers that wind up being refused.
First figure out finances
Knowing your credit score and how much you can afford to put toward a down payment can help narrow your search effort and find a home faster, according to U.S. News & World Report. When you can focus your energy on fewer homes, you increase the likelihood of having your offer accepted by the seller.
Don't forget about other potential expenses, such as closing costs, when determining your final budget. This can impact how much money you can truly offer a seller.
Pre-approval is another great way to help yourself when shopping for a home in a seller's market. Presenting a pre-approval letter to the seller when you make an offer lets him or her know that you are a serious and credit-worthy buyer.
Don't hesitate to jump on a deal
When it comes to real estate, waiting isn't an option during a seller's market. Other buyers are likely very aggressive when it comes to new homes on the market. If you see one that appeals to you, try to organize a showing or attend an open house
Also, be flexible with your schedule. Allow extra time to view homes and be willing to check out a newly listed property on a whim.
Get creative when looking at listings
In addition to homes that have been posted on the multiple listing service, also check out properties an owner is selling independently from a real estate agent.
Another alternative is looking at short sale or foreclosed real estate. Ensure that you ask for guidance from your real estate agent when navigating through these home search methods.
Have an inspection of your home conducted
While you likely are at the mercy of those selling homes when the market is tipped in their favor you can still negotiate a price if you have a trained professional conduct a home inspection.
Ask your family members and friends if they have any recommendations for a quality home inspection company that can provide you with more knowledge regarding a property you want to make an offer on.
If you know the heating and cooling system needs to be replaced or the windows are old an inefficient, these tidbits of information may give you a bit of a leg up when negotiating a sales price. However, it is important to be reasonable when making demands. This is especially important when buying in a seller's market.
According to Zillow, you should be alert when initially touring the home as well. If you notice any obvious issues you can adjust your offer to meet those conditions.
Stand out in the sea of buyers
When demand is high, a seller might receive multiple offers and getting your dream home might mean gearing up for a bidding war. You want to ensure that your offer is fair, appealing and that you stand out as an interested buyer. A real estate agent can help you out when it comes to deciding a fair price. His or her experience and knowledge of selling prices for similar properties that are also located in the area will help ensure you accomplish this.
To stand out, consider writing a letter to the current owners expressing your sentiment. Humanizing your offer and relating to them can help ensure you are heard and can increase your chances of having your offer accepted. Showering their home with compliments and telling them why you believe it is the perfect place for you and your family is an easy way to stand out.
Buying a new house is exciting. When you're in a seller's market it can be tricky, but when armed with a few tricks and tools you can successfully navigate through the process and nab the perfect home for a reasonable price.