The home-buying process is a paradox — it can be both overwhelming and exciting. That’s why when you decide to buy a home, especially for the first time, you have to be 100% sure about it as this could entail commitment, time, and a massive investment.
So many factors need to be considered as you make that decision whether to buy a home or not. Is it the right time to buy one? Are you ready for homeownership? And given the current climate, what’s a sellers’ market? How do you purchase a home in such conditions?
We at Coldwell Banker Traditions are here to answer questions and guide you through the process. Here’s everything you need to know about buying a home in a sellers’ market.
A sellers’ market defined
A sellers’ market occurs when there is more demand than there is inventory. In real estate, this means that there are more buyers than there are properties up for sale. Due to the shortage, available homes sell faster and for higher prices than average.
Is it impossible to buy a home in a sellers’ market? No. But to gain the edge over a sea of buyers, you have to make your offer better than everyone else’s.
Buying your dream home in a sellers’ market with ease
There are some hurdles to buying a home in a sellers’ market. Aside from the low housing inventory, the competition is stiffer. But if you are 100% ready to buy a home with an experienced real estate agent by your side, anything is possible. Below are some tips that can help you in navigating a sellers’ market.
- Get pre-approved
- Put your best offer forward
- If possible, show some cash
- Waive contingencies
- Keep yourself updated on new listings
- Work with an experienced real estate agent
One of the first few things you should do as a buyer is to obtain mortgage pre-approval. It gives you a clear picture of your buying power. From the get-go, you’ll know the best price you can offer on a property. Moreover, pre-approved buyers are attractive to sellers because deals are less likely to fall through.
In a sellers’ market, sellers often come across multiple offers in a day. There is no room for low offers here. Thus, don’t waste your time by low-balling on your offer — if you come across a home that fits your criteria, make your best offer first.
Sellers prefer cash offers. For most of them, it’s more definite than waiting for a buyer to finalize their mortgage loan. So, if you can provide cash, then, by all means, do so. An alternative to paying for a home with cold, hard cash is by showing earnest money to express that you’re a serious buyer.
Real estate transactions usually involve contingencies like home inspections and repairs. These endeavors take time to fulfill. Some sellers even see contingencies as risks that could result in a deal falling through.
Consider waiving these contingencies to make your offer more attractive to sellers. Talk to your real estate agent and discuss essential contingencies to keep. This article might help you weigh your options.
In a sellers’ market, you can expect homes to close in just a few days. This makes the home-buying process extra challenging, especially if you’re operating on a timeline.
Don’t fall in love too hard with a property. Keep your options open and watch out for new listings in the areas you like. This way, when another buyer snags a home you like, you can easily move on and concentrate your efforts on the next property.
You should also consider expanding your search to neighborhoods that aren’t among your top three. You might just find gems in places that you would never have considered in the first place.
The most important thing you can do is to find a good agent. Hire a realtor with vast experience buying homes in a sellers’ market. They’ll know how to make irresistible offers, choose which contingencies to do away with, and beat your competition in the event of a bidding war.
Working with a local real estate agent with a network of connections among industry colleagues can also lead you toward homes that are just about to hit the market. This will give you the edge in extremely hot markets.
Don’t let a sellers’ market keep you from your dream home
Coldwell Banker Traditions has 100 years of experience in helping people buy homes in Williamsburg, VA. Count on us to give you home-buying tips and expert advice. Call 757.229.9595 or sending an email to info(at)cbtraditions(dotted)com. to get your Williamsburg, VA real estate homebuyer guide.