Under ideal circumstances, home buyers will be able to take their time when purchasing a home in order to make sure they're getting the best home and deal available. However, sometimes circumstances are less than ideal, and one of those times is in a seller's market when there are far more buyers than there are homes for sale. Here are six essential tips all home buyers should know when purchasing a home in a seller's market.
1. View Homes Quickly
In a seller's market, homes can be sold within days of being put on the market, so it's important for buyers to make an appointment for a home showing as quickly as possible. If they try to wait until the weekend to go see the home, there's a chance that the homeowner may have already accepted an offer.
2. Don't Add Too Many Contingencies
When it comes to buying a home, there are some features that a buyer may need such as a first floor bedroom or laundry. However, it's easy for some buyers to get hung up on things that they want, and in a seller's market, getting hung up or putting too many contingencies on a home can mean missing a perfectly good home. Always remember that things like stoves and countertops can be replaced, but structure is much harder to change.
When the market is favorable to sellers, buyers can't become too picky, or they risk losing a home that is a perfect match. Cosmetic problems with a home can always be changed, and it is worth letting certain things go to make a formal offer on a property. While a home buyer may need to make an offer on a home contingent on the sale of their own property, too many contingencies is going to an offer that isn't worth taking to the seller. When homes are selling fast, buyers have to be ready to make an offer that can happen quickly.
3. Get Preapproved For a Loan
There isn't much time to be waiting around in a seller's market, so it's important for the home buyer to do everything they can to prepare in advance, and this includes getting preapproved for a loan. Not only does getting preapproved show the seller that the buyer is serious about purchasing the home, it's also helpful because it means neither party will have to wait around for approval later on. In fact, being preapproved can be an important factor sellers will look for when making a decision on offers.
4. Put In the Best Offer Possible
In a seller's market, there's a good chance that the buyer will only have the chance to put in one offer on each home, so they need to make it count. In order to do that, it can be a good idea to offer more than the asking price. Buyers can also add an escalator clause to their offer, which will raise the buyer's offer if the seller receives any higher offers in order to beat them.
5. Be Ready For Bidding Wars
In a situation where one seller has multiple offers, it's very likely that they'll open the floor for a bidding war to get the best possible offer. In this sort of case, all buyers will be allowed to adjust their offer as much as they please in order to outbid the other buyers. This is a best-case scenario for sellers, but for buyers it has the potential to push a home's price out of budget.
6. Work With a Real Estate Agent
Finally, one of the most important things a home buyer can do to help themselves is to hire an agent. An agent will be able to walk the buyer through the home buying process, find prospective homes for sale that might have slipped under the radar, and more. In situations like bidding wars, they can provide crucial advice to help the buyer make their offer the most appealing it can be. No matter what the situation, hiring an agent is a must.
Buying a home in a seller's market, whether it's in Spring Hill or elsewhere may seem difficult, but it's definitely doable, and following these six tips can help tip the odds in the favor of any buyer.
The Ashton Real Estate Group of RE/MAX Advantage
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