TOW: 5 Steps for Buyers to Succeed in a Seller’s Market
With low interest rates, rising rent prices and a stronger sense of job security, more folks are jumping into the housing market to buy their first home. With the current low inventory levels, the market today is considered a “Seller’s Market”. In a Seller’s Market, it is likely that buyers will encounter competition and bidding wars. Often, full price offers are the norm and even offers over asking. So what should home buyers do in a seller’s market when you’ve fallen in love with the house and can’t see yourself in any other home? Here are a few steps to increase your chances of getting the home you love and setting yourself up for success in the beginning:
- Step 1.Before you do anything, get a pre-approval letter. The pre-approval shows the seller that you have been vetted financially while giving you an idea of how much you can afford.
- Step 2. Don’t put in a low-ball offer. Be prepared to pay fair market value. Low-balling a seller may alienate them right off the bat. Plus you waste everyone’s time going back and forth. And you risk another offer being accepted while you fuss.
- Step 3. Be flexible with timing. You can improve your chances of landing the home you want if you can show that you are willing to move as quickly — or as slowly — as the seller needs.
- Step 4. Tug at the heart strings. Are you and the person selling your home both veterans? When sellers are facing multiple offers, getting a personal letter from buyers that shows why they love the house might help to set the offer apart.
- Step 5. Get a pre-inspection. Anything you can do to speed up the buying process and make it easier for the seller might improve your chances.
Remember, if you love it, there’s good chance others are going to love it for the same reasons. It can be a stressful time so make sure you have all your tools in your tool box ready to go. Making sure you have the most awesome Real Estate Agent on your side is another big factor. You may want to check out my blog on How to Hire the Most Awesome Realtor Ever! So give me a call and let’s get the pre-approval for your home loan out of the way first.