Tips For Buying In a Seller’s Market
Tips for buying in a seller’s market
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No matter where you live, listings for homes in popular neighborhoods are often few and far between. When these homes do hit the market, they typically don’t remain on the market for very long. With that in mind, if you have your heart set on buying in a desired area, starting your house hunt early and having patience means that when the moment comes, you’ll need to act quickly.If you’re really interested in a home, get as much info as you can beforehand: property reports, disclosures and offer due dates. These can usually be requested through your buying agent. Very important is to keep your schedule open, because in hot markets, available properties wait for no one.
Have your proof of funds & pre-approval ready
If you’ve decided you want to throw your hat in the ring and make an offer, always assume that many others have as well. Anticipating a multiple offer situation can help you come out ahead. After you’ve seen a home, speed is often the key. For hot markets, you might only have a day or two to get your offer submitted after viewing the home. Double check with the seller’s agent regarding the offer deadline so that you can be sure yours is submitted on time. In order for you to be “offer ready” when you find the property you want, it’s crucial to have any supplemental paperwork, like your mortgage pre-approval and proof of funds for the down payment, ready to act quickly.
Keep your offer simple
Most offers include conditions — things like completing inspections and receiving a mortgage approval — that need to happen for the transaction to move forward. When looking at offers, sellers tend to see conditions as potential opportunities for the deal to fall apart. As a result, they’re more likely to choose an offer that’s relatively “clean” or reduces their risk of potential hang-ups. In a competitive market, you might see other buyers removing or reducing their conditions periods to make their offer more competitive. However, it’s also crucial that you feel comfortable moving forward. For example, if you choose to waive an inspection condition, you’re agreeing to buy the home regardless of what problems may exist. As you put your offer together, consider the maximum amount you’re willing to pay, what compromises you’re willing to make and how flexible you can be on your closing schedule
Start with a strong sale price
Besides keeping your conditions in check, there is another component of the offer that will help set you apart from the crowd and it’s fairly obvious — the offer price. When you’re bidding for a home in a desirable neighborhood, you need to put your best foot forward.
As for how much you should offer, consider the asking price first. If it’s within your budget you may want to at least offer that amount if not a little more. Consider the amount listed on your pre-approval as your maximum, and work within those limits.
Write an offer letter
On the surface, all offers look the same. That is to say, they all generally include the same information about the buyer. In a situation where the seller is considering multiple offers, all that information can start to blend together. An offer letter, or a personal note you write to the seller explaining why you’re the perfect buyer for the home, might just be the thing that sets your offer apart from the others. Bear in mind that the ideal offer letter is short, sweet, and to the point. Your goal is to connect with the seller emotionally so that they’ll be more inclined to choose your offer. In a few paragraphs, you’ll want to tell the seller why you fell in love with their home and why they should sell to you.
It can feel overwhelming shopping for a home amongst crazy competition, but don’t be discouraged. With the right amount of preparation, you’ll be ready to make the necessary moves to secure the home of your dreams.
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