Surviving a Seller’s Market: The Ultimate Cheat Sheet
House hunting is challenging at any time; shopping during a seller’s market is a whole additional difficulty level – and that’s what would-be buyers are seeing across the country. The supply of homes is low, demand is high, and sellers are in control. If you’re not careful, you’ll be left drying your eyes with the broken shards of your rejected bid. Sound painful? It is.
Check out the seller’s market survival tip below to stand out from the competition and get that edge.
KNOW THE SIGNS
Look out for these two red flags to be sure that you really are buying in a seller’s market:
- Houses are selling for more than asking price.
- Homes sell quickly, and inventory doesn’t hang around.
COMMIT TO BEING ON CALL
To succeed in a seller’s market, you have to make house hunting a priority – not just something you fit in here and there on the weekends if you have nothing better to do.
COME BEARING PAPERWORK RATHER THAN PROMISES
The way to be taken seriously in hot markets is to show up with hard evidence in hand that you have the money and can get the mortgage: bring a mortgage pre-approval letter, plus a “proof of funds” from your bank showing you have enough money to cover the down payment.
WAIVE THE WHAT-IFS
Typically, when homebuyers make an offer, they do so with contingencies. In a seller’s market, you may have to drop one or two caveats to stand out to sellers, who generally would prefer as few hurdles on the way to closing as possible.
DON’T PLAY HARDBALL
In your typical home-selling scenario, buyers make an offer below the seller’s asking price, and then negotiate upward from there. But in a seller’s market, there is little to no room for price negotiations.
WIDEN YOUR SEARCH
In this kind of market, it’s not unusual to feel out priced in your favorite neighborhood. That may merely mean that you need to start scouting farther afield – like, say, in an up-and-coming neighborhood nearby.
Get the full article here.