3 Tips for Buying a House in a Seller's Market
Buying a house is an exciting step, but it can also be a bit challenging, from finding all the features you're hoping for to enduring the bidding process. Sometimes, other conditions can complicate it further. One is a seller's market, which occurs when home demand exceeds the present supply, increasing competition and prices. Thankfully, you can still buy a house in a seller's market while staying within budget and ensuring your needs and goals are met. Here are a few tips to help you do this.
How to Buy a House in a Seller's Market
1. Prepare to Bid Right Away
In a seller's market, time is of the essence. Homes tend to sell much faster in this type of climate, so prospective buyers must be ready to bid as soon as they make their decision. Before you begin touring homes, take care of all the preliminaries to increase the chances of a timely—and successful—bid.
You can figure out your budget and any wiggle room in cost, then get preapproved for a mortgage. It's also helpful to research neighborhoods and home prices in those areas to understand what an acceptable offer looks like.
2. Make a Strong First Offer
Multiple parties will likely be interested in a home you like. Given the increased competition, you'll probably want to make your best, strongest offer first.
Generally, there is less negotiation and back-and-forth in a seller's market, as the seller will almost certainly reject a lower bid for a higher one when presented with multiple options. Making your most attractive offer right away can minimize competitive interest and give you an advantage.
3. Appeal to the Current Owner
Making yourself stand out to the current owner can help get your bid accepted in a seller's market. Have your agent reach out to the listing agent to ask about anything that would sweeten the deal with the sellers. For instance, if the seller hopes to close within the next 30 days, let them know you can move just as quickly. You could also offer to work with their title company of choice or waive the home inspection. If your offer is on equal footing with another buyer, showing that you're amenable to the seller's terms and reducing or removing these contingencies could easily tip the scales.
If you're ready to buy a house, don't let a seller's market get in the way of your dream house. Instead, turn to Dixon Team Keller Williams. Since 2006, their real estate agents have served the Ooltewah, TN, area. They provide residential and commercial real estate listings and will guide you through each step of the buying process. Call (423) 702-2000 to schedule a consultation, or visit the website for more information about their team.
