We all know it’s a seller’s market and that’s good for sellers. What does that mean for buyers? A big challenge is finding a home you want to buy and then have your offer beat out all the other buyers making an offer too. You must be prepared, informed and ready to act.
According to the National Association of Realtors, there is less than the six-month supply which indicates a balanced market. A well-priced home in good condition will typically move very quickly and often has multiple offers. In a seller’s market, you will need to be strategic.
Be Prepared- Get your finances in order first. If you will need to obtain a mortgage, work with your mortgage consultant to get preapproved for financing. Pre-approval requires a little more work on your part than just getting prequalified. If you find yourself in a multiple offer situation, having a preapproval in place will really set your offer apart. No financing needed, you will need to provide proof of funds for cash offers.Be Informed- Work with your REALTOR® to understand the specific market conditions for the area you are interested in. They can answer important questions about the list to sell price ratio or the expectations of sellers in the market. Knowing what’s important to the sellers can be key to creating a winning offer. A great REALTOR® will find out the motivations of the seller.
Be Ready to Act- In a competitive market it is not unusual to find yourself in a multiple offer situation and that means you need to be able to make an offer immediately. Houses can be gone in a matter of hours. Everything is negotiable in real estate; however, in a competitive market sellers are less likely to negotiate if they have offers waiting in the wings. Start with your best offer. It’s important to remember that the offer not only includes the price, but also your financing package and other terms such as the closing date and contingencies. You may consider waiving or shortening contingencies to make your offer more attractive. Talk with your REALTOR® and discuss how to make your offer stand out to a seller.
Be Prepared, Be Informed and Be Ready to Act