Tips for buying a home in a seller’s market
The real estate market can be difficult to navigate for both buyers and sellers. First-time buyers can easily become overwhelmed as they search for homes, while sellers hoping to get the best price for their homes might be frustrated if offers are slow to come in or fall short of their asking prices.
If met with an underwhelming market, many sellers can pull their homes off the market and wait until it becomes more advantageous to sell. But buyers, particularly those shopping in a seller’s market, may not have that flexibility. Buying in a seller’s market can be competitive and frustrating, but buyers can employ various strategies to survive such markets and land the homes of their dreams.
n Get mortgage preapproval. Sellers’ markets typically feature low inventory, which can make the buying process very competitive. Prospective buyers who do not have a mortgage preapproval letter in hand when making offers may find themselves losing out on their dream homes to fellow buyers who have gotten preapproval from a lending institution. Sellers may be impatient with buyers who have not yet been preapproved for a mortgage, even accepting a lesser offer from buyers who are ready to begin transactions immediately. The preapproval process is relatively quick and simple, so buyers should not hesitate to apply.
n Stick to your budget. Lenders will indicate to prospective buyers how much they’re willing to lend them, and that figure is typically considerably more than buyers are willing to borrow. In a seller’s market, bidding wars can quickly drive up prices, but buyers should stick to their budgets so they are not house poor after buying. Sticking to a budget can be difficult in a seller’s market, but such patience will likely pay off in the long run.
n Be ready to compromise. Unless they have unlimited budgets, buyers often must compromise when purchasing a home. That’s especially true in a seller’s market with limited inventory. Buyers who need to buy a home must identify their needs versus their wants and recognize the likelihood that they will have to compromise.
n Work with real estate agents. Some buyers may be tempted to go it alone, searching for and ultimately buying homes without the help of real estate agents. That can be a foolish move in a seller’s market where competition is high and inventory quickly disappears from the market. Veteran real estate agents have worked in buyers’ and sellers’ markets, and buyers can use that experience to their advantage. In addition, real estate agents likely have access to inventory before homes appear on popular real estate websites, giving buyers working with them a leg up in competitive markets.
- Why People Have Been Showing a Great Concern for Plain Cotton BagsIn Market TipsFebruary 28, 2018
- Forex: The rupee largely shrugged off global impliedIn Forex WorldAugust 19, 2017
- 16 Percent of Small BusinessSmall Businesses Rely on a Single CustomerIn StartupsSeptember 24, 2017
- The Trump value trade might not be dead after all, and could see a ‘monster’ recoveryIn FinanceSeptember 24, 2017
- 5 things every gig worker should knowIn Market TipsAugust 18, 2017
- 8 key steps for a successful Instagram takeoverIn Marketing & SocialJuly 15, 2017
- Stock market’s 5-month win streak should cheer the bullsIn OtherSeptember 13, 2017
- Forex reserves at new life-time high of $382.53 billionIn OtherJuly 2, 2017
- Believing These 3 Myths About Duplicate Content will Keep Your Business From GrowingIn Market TipsSeptember 24, 2017
- Beginners Guide to Developing a Mobile StrategyIn StrategySeptember 9, 2017
- ‘We don’t want a fat Europe, we want a fit Europe,’ says German politicianIn FinanceSeptember 24, 2017
- United States CFTC USD NC net positions dipped from previous $188K to $101.3KIn Forex WorldSeptember 24, 2017