Surviving a Seller’s Market as a Buyer
With mortgage rates dropping significantly, now is a great time to buy a house – if you can find one. It’s an even better time to sell one. We are currently in a seller’s market, which means there aren’t enough homes on the market to accommodate everyone looking to buy one.
That’s great news if you are selling your home. With more buyers bidding on fewer homes, your home is more likely to sell quicker than normal, and you may get full asking price or more, in some cases!
If you are shopping for a home, here are some tips to give you the best shot at getting your dream home.
Get Prequalified for Your Mortgage
Having proof that you can afford the home on which you put an offer gives you an edge when you are bidding against several other buyers. Even if your offer comes in lower than someone else’s, sellers looking to close quickly may be willing to reduce the price for a guaranteed buyer.
Waive Contingencies
In a buyer’s market- where there are more homes for sale than buyers shopping – you can usually put conditions on your offer, such as asking the seller to pay your closing costs or backing out of the deal if your existing home doesn’t sell. Contingencies can be obstacles for the seller and may move you to the bottom of the offer list in a seller’s market.
Keep an Open Mind
This is tough one when you’re spending so much money on a home. Know that you may not get everything you’re looking for in a home when you are competing against other buyers. Make a list of the features you can live without and features that are deal breakers if you don’t have them. If you can’t do this, be prepared to walk away without regret.
Don’t Compromise Your Budget
Don’t bid on more house than you can comfortably afford just because you’re having difficulties finding the perfect home. Have patience and widen your home search.
Opt for New Construction
If new construction is an option in your area, consider building instead of buying an existing home. It usually takes longer to build your home, but you have control over features and price when you build.
Buying a home can be stressful under normal circumstances. A seller’s market adds challenges and arming yourself with information and going in with reasonable expectations will help you survive as a buyer in a seller’s market.
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