You’ve Found “The Home.” Now What?


The long, tiring search is over and you’ve kissed a lot of frogs. You've finally found your dream home and want to make an offer on the property. How do you know how much to offer and if you’re getting the most value for your money in this Brandon MB market?


The offer phase of purchasing a home isn’t always straightforward and you need to at least know the market on homes in that area so you can determine if you’ll be getting the fair market value for that home. Ask your real estate agent to go through neighborhood  comparable actives and solds with you.  This report should be helpful with the offer process.


Lowballing is a common term in the world of real estate. It means that you’re offering to buy the house for a number that’s far below the market value. You run the risk of insulting the seller and losing the home for good.


But, if you don’t know the fair market value of the home you could overpay by thousands of dollars. To zero in on the market value of the home you’ve chosen, you should know if you’re in a seller’s or buyer’s market.


A buyer’s market means that there are plenty of homes for sale, but a shortage of buyers. This gives you more power to bid lower than the asking price and to even ask the seller to pay for some or all of the closing costs. In a buyer’s market, you’ll find the seller more willing to negotiate.


If you’re in a seller’s market, there is a shortage of homes for sale and you’re likely to have several potential buyers making offers at the same time. A seller’s market is a little tougher to negotiate in because you may need to compete with other buyers.


It’s sometimes devastating to a potential home buyer when their good-faith offer is rejected – especially without a counter offer. This could happen when the seller receives many offers and your offer was much less than the others. Or, the seller may back off of your offer to see if he can eventually get a better one.


All may not be lost, even if your offer has been rejected by the seller. The seller may not have accepted any offer on the home and you may still have time to negotiate by moving rapidly with a higher offer. This may result in a bidding war that your real estate agent will need to help you with.


A buyer’s agent is extremely helpful if you’re a first-time home buyer. He or she will be familiar with the local market and be able to negotiate the best deal on your behalf. You’ll learn a lot during this process, which may be helpful to you when you decide to sell.


If you’re working in a seller’s market and there’s a real shortage of homes in the area, you may still be able to get your dream home. Find a home you really love in an area you’re interested in and write a letter to the homeowner.


It’s a true leap of faith to try this method, but it’s worked for thousands of buyers and it just might work for you. Even if you receive a “not interested” reply, at least you’ll know you tried.


Never rush to make an offer in any market until you’re sure the home is right for you. Unless you do the proper research on the home, you may be rushing in to a situation that you’ll later regret.


Whether you live in Brandon MB, Virden MB or you're searching for acreages in these surrounding areas, the search can be strenuous and time consuming.  You can call on me to be your trusted go to REALTOR®, with insight on all new listings and recent home sales, within our local real estate market.

4 Hot Tips When Buying a House in a Seller’s Market


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.

Conclusion

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!

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