Unlike the past few years, where homeowners had to do everything in their power to attract fast buyers and seal the deal, the current real estate market has entered what is known as the seller's phase, which gives the seller an upper hand when setting the selling price.
A drop in interest rates and down payment assistance from government housing programs are possible factors that have been a boon to the seller's market.
So, what can you do to leverage a seller's market? Below are ten tips that will help you when buying a home in a seller's market.
Buying a house is a serious lifetime investment, and when the process favors the seller, the one thing you want to do is consult an experienced realtor.
When buying a house in a seller's market, you need all the help you can get, and you are more likely to get a better deal when you have a seasoned agent on your side. With limited inventory, sellers who have put a higher asking price are more likely to receive lucrative offers within days of listing in a seller's market.
With a realtor, you will be in a stronger negotiating position, and chances are the seller will be willing to concede and lock in the purchase agreement.
Prequalification is of absolute importance because it's the only way to prove to the seller that you are a competent buyer. If you haven't taken the time to speak with a reputable lender, it sends a message to the seller that you are not serious with their house hunting and may lag on your payment.
Even though offering lower than the asking price may be a reasonable strategy but not when buying a home from a seller's market. When there is a surplus shortage, and the competition is fierce, you need to step up with a strong offer, which brings us to the next important point;
It is misguided to wait too long while over-analyzing a home purchase in a seller's market. To give yourself more leverage, have your finances in order, and be prepared to move quickly as soon as you find a home that meets your qualifications in terms of location and budget.
When purchasing a home in a seller's market, you are shopping in a competitive market. Therefore, hire a realtor who will help you have all your paperwork documenting your proof of funds, then make your best (highest) offer.
Keeping up with current seller market trends from reputable news sources increases your chances of making successful real estate decisions. Note that despite the economic slowdown, it's currently a seller's market; the quick sales and multiple offers will continue in the foreseeable future.
Ready to start looking into buying your next home? Contact Lendsmart today to learn more about the mortgage process and to speak with a member of our team about the next steps toward your dream home.
We are a direct lender and a broker who will work one on one with you to exceed your expectations. If we don’t have a product that makes the most sense for you, we’ll find the lender that does. We’ll make sure you have the best loan at the best price. Choose Lend Smart- it’s the smarter way of doing business.