5 Quick Tips In Buying A Home In A Seller's Market

We’ve all heard it – “Buying a home in a seller’s market is hard!”

But what is the reason behind that?

This is because there are not as many homes as there are buyers in the market. This creates multiple offer situations, which lead to “Best and Highest” calls from the listing realtors, jacking up the purchase price, and pricing out a lot of first time home buyers. So here are some tips on how to navigate this tricky market!

BUYING A HOME IN SELLER’S MARKET
TIP #1: Identify Home Wants Vs. Needs

The first piece of advice that we recommend to all home buyers is to make two lists. The first list should be the “Needs” list. In this category, you are to list all the non-negotiable features for your new home. Whether it’s a certain school district, the number of bedrooms, neighborhood, pool/no pool, the list can go on.

The second list is labeled “Wants”. In this list, you are to write out your desires. These are things like stainless steel appliances, fixtures, countertops, and paint colors; basically, all the things that are easily amendable.

By making these two lists and visually seeing what the differences in Needs/Wants are, you’ll be more focused on finding a home that fits your criteria but doesn’t necessarily have all the shiny updates that a lot of people desire. The homes that could use a little love are less likely to get into these bidding war scenarios.

BUYING A HOME IN SELLER’S MARKET
TIP #2: Establish and Stick To A Budget

Second, we STRONGLY ADVISE getting pre-approved for a home loan before you even step foot in your first home! Knowing your limit also allows for smarter negotiating, and helps ensure that you won’t be overpaying.

BUYING A HOME IN SELLER’S MARKET
TIP #3: Bid Completely With A Solid Earnest Money Deposit

When multiple offers are in play, buyers are better suited to submit a strong offer COMPLETE with a strong EMD. This EMD will signify to the seller that you as a buyer is serious about purchasing the home, and committed to getting the home closed. A strong EMD helps an offer stand out.

BUYING A HOME IN SELLER’S MARKET
TIP #4: Be Flexible

Some sellers are not just looking at the purchase price when selecting an offer. That’s why it’s important for buyers to reach out to the owners and/or listing agents and directly ask, “What is the seller looking for in a contract that will stand out?” Sometimes it’s a certain closing date, a special type of financing, or even the buyer being willing to lease back the property to the seller for a month after closing, while the seller looks for a new home. Asking this question can help your offer stand out among the rest.

BUYING A HOME IN SELLER’S MARKET
TIP #5: Hire A Professional

Now, we’re down to our last and most important advice of them all – HIRE A PROFESSIONAL! When inventory is low, houses move quickly. So having a professional on your side who is willing and able to stop, drop, and roll, making sure that everything is in line and you are seeing the homes right when they hit the market is very, very important. Timeliness and market knowledge will help ensure that your offer is the first one in the seller’s hands!

Bottom Line

Buying a home in this kind of market can be quite complex and overwhelming, but we’re here to help! Reach out to our local realtor, Cody Tuma, at 541-306-3139 today.