A home seller’s market is a matter of economics where inventory is low and demand is high. Unfortunately, this leads to some homes being on the market for only hours with competitive bidding. When buying a house, this cut-throat competition can put you in a bidding war that you can’t always win. The following tips could help you gain the advantage you need to compete among other buyers.
1) Determine Your in a Seller’s Market
This is the first step you should take to make the necessary preparations to compete in a seller’s market. Knowing you’re in it will help you adapt and shape your home buying strategy to better fit the current market conditions.
You can easily do this by using a market absorption rate calculator, which tells you how many months it would take to sell all the remaining homes or inventory for sale in a given area. Getting a low number means you’re already in a seller’s market. Once you’ve determined you’re in a seller’s market, you can get advice from a real estate agent on the next course of action to take.
2) Make Your Best Offer First
In strong seller’s markets, it is recommended that you make a list price offer quickly to prevent competitive interest. There’s a chance that the seller’s agent is already happy to get their price instead of getting an extra few thousand dollars from multiple buyers. That process alone can take up considerable time and effort, and they only get very little compensation from it. You can take advantage of the lazy seller’s agent and close a deal fast, which is exactly what most agents want in the first place.
3) Get Ready to Bid and Pay More Than the Asking Price
Posting your offer quickly doesn’t always work, but it’s worth a shot. When it does fail, and you get competition for the house you’re aiming for, be prepared for it to not be your final offer.
Home buying activity in a seller’s market is hot, and it will likely just get hotter as more buyers compete for the same house. This can make it harder to lock in a deal, so don’t expect to get a discount any time soon. In fact, it’s quite possible that you’re going to pay a bit more than the asking price. However, if you’re really determined to get the house, then bidding is the only way to beat the competition.
4) Counter Offers Are Rare
While we mentioned the possibility of bidding, sellers don’t always consider it. They can easily just pick the best price out of all the offers they’ve received, even if they got more than 12 offers at once. So there may not be a chance to give a counteroffer, but if you happen to see an opportunity to give one, then you should take it and give a better offer. However, as a buyer, you really need to put your best offer on the table the first time so you can have a higher chance of winning the house.
Competing in a seller’s market can be exhilarating and frustrating at times. But there’s no reason to get discouraged since getting the house you’ve always wanted, despite the market conditions, is worth the trouble. With the right amount of preparation and patience, you can make a few good moves that could help you land the house of your dreams.
Whether you’re buying or selling a home, Chris Low is here to help you. He is committed to going the extra mile to ensure that all of your needs are successfully met in a professional and honest manner. Whenever you need a reliable real estate agent to work with, don’t hesitate to contact Chris Low Realtor®. Give him a call today to get started!