Buying a home in a seller's market can be hard for new home buyers. Fierce competition can make it harder to get a property, which can lead to wasted time and missed opportunities. Entering the market with finances in order and a good sense of focus can help. Home buyers who have little experience with buying a home can follow these tips to make the process easier and more productive.
Position Yourself Well
Before they can begin the process of buying a home, home buyers must get their finances in order. Buyers who have adequate resources and who appear financially stable on paper may stand out in the event of a bidding war. This usually involves getting pre-approved for a mortgage, saving up a large down payment and getting personal credit in order. Home buyers should have a clearly defined home buying budget, should know exactly how much they can afford and should also know what they're willing to spend.
Many home buyers find that getting their finances in order in this way can take months. However, entering the real estate market prematurely could mean settling for a less expensive home, or in a less desirable area. For many home buyers, taking extra time is worth the trade off.
Do Research Before Entering the Market
While getting their finances in order, home buyers can do research about the local real estate market. Looking at homes during this time helps buyers hone their sense of what they do and don't want. This way, when the times to make an offer on a property, they can feel confident that they're making the right decision.
Making a list of must-haves can help. This way, buyers can focus on homes that meet all of their needs. Home buyers who aren't sure what they want may find themselves uncertainly going from one house to the next, afraid to make a commitment.
See Homes As Soon As They're Available
In a seller's market, offers get made quickly. Home buyers need to look at listings on a daily basis and should go see homes as often as possible, either after work or first thing on the weekends. Buyers who wait may find themselves always too late to make an offer, or competing with others who got to the house first. This puts the buyer who makes the second offer in a less competitive position, and can lead to a lot of disappointing rejections.
Make Your Best Offer Up Front
When bidding against other qualified buyers, the best way to get a purchase agreement in place is to make a very competitive offer. In a seller's market, there's no room for negotiation. Buyers will have the best luck by offering everything they can afford up front. Often, this involves waiving contingency clauses and also offering niceties like a flexible move-out time. Sellers are often attracted to offers that have these bonuses because they make the sale process easier for the buyer.
Write A Letter
Sellers often feel a sentimental attachment to their house, and will be drawn to buyers who seem to share those same feelings. Sometimes, buyers can sway sellers by writing a personal letter of introduction. Sometimes buyers will even discuss their appreciation for the house as well as their personal struggle to buy a property. This helps endear the buyer to the seller, and may persuade the seller to accept the offer.
Work With A Professional
Working with a professional Westridge real estate agent can help buyers get the house they want, even when competition is fierce and sellers have the upper hand. For more information about how you can buy a home under these conditions, contact an experienced real estate agent in your area today.