Buying a home in a seller's market can be a frustrating process if you aren't prepared. How do you prepare? Here are some tips to get you ready to buy in today's fast-moving seller's market:
Price: Be Ready to Make a Strong Offer
Chances are, you will already have a price range in mind when you start your search - and, in a normal market, to leave room for negotiation, your initial offer is at the bottom of that range. However, in a seller's market, don't expect to do it that way. Since you’re going to have a lot of competition, the price you initially offer may be your only shot at the property. In a seller's market, we tell our clients to be prepared to not get another shot at the property outside of the initial offer. Are you ok losing out on this house based on your offer price? If you aren't, make sure your offer is a strong contender.
If you don't want to miss out on a property you love, make sure you are pre-approved for a loan before beginning your home search. Seller's will take you, and your offer, more seriously if you are pre-approved.
Most offers have 3 contingencies: loan, appraisal and inspections. These contingencies allow a buyer to back out of a contract while still retaining all of their deposit money. The shorter these periods are, the better. There’s nothing worse for a seller than having their property tied up for a couple weeks only to have things fall apart. Shortening your contingency periods minimizes the seller’s exposure and makes your offer look all that much better.
Also, ensure that your offer is not contingent on selling your current home. With buyer competition and multiple offers, sellers may choose to pass on your offer (even if it is higher than others).
Bridge Loans Available
A bridge loan can help ease the transition from one home to another.
While today's market favors sellers, NOW is still a great time to buy as mortgage rates are trending upward. Don't miss out on some of the lowest rates in history!
Do you have any questions about buying a home in today's market? Give us a call; we would be honored to help you!
Selling S.W. Michigan since 1988
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