A seller's market is a market condition that occurs when there are fewer homes than buyers, and many buyers are in a good position to compete with one another for homes. In a seller's market, home prices are high, and can go higher because of bidding wars. Buyers who want to be successful must be fast when they make their offer, and offers they make must be good. Here's what you need to know.
Know What You Want
A buyer who knows exactly what they want can make an offer confidently. A buyer who knows exactly what they want may also feel more comfortable making a more competitive offer as a result.
Buyers who are new to the market and who aren't sure yet what they want may be able to find out by browsing listings and by attending open houses. Buyers can also decide what they want by giving thought to their own priorities. Considering personal goals is a good way to decide what kind of home will be most suitable in the future.
Get the Offer In Fast
Homes go quickly in a seller's market. Often, sellers are easily attracted to the first offer that's made on the house, because they're not sure what other offers are to come. A buyer who is not in a position to make a very competitive offer may have the most luck by making an offer first, well before other potential buyers make their offers.
In order to get in the first offer, serious buyers must go see homes in the first few days that they're listed on the market. Often, this means going out after work, checking listings throughout the day, and remaining in close contact with a real estate professional.
Make Your Best Offer First
In times when the market is weak, buyers can begin by making low offers and making increases as needed. In a seller's market, this tactic does not work. Making the best offer first is the best way to get an offer accepted. Buyers who are in a position of weakness may need to make several offers on a home before one is accepted.
Buyers who are pre-approved are in a stronger position to buy compared to buyers who are pre-qualified. Sellers like offers from pre-approved buyers because they're more likely to be approved for a mortgage at the close of escrow. Getting pre-approved is a fairly straightforward, although time consuming, process. Buyers who haven't yet gotten pre-approved should speak with their mortgage lender to begin the process.
Work With a Real Estate Professional
Working with a qualified real estate professional is one of the best ways to ensure that the Glenbow home purchasing and negotiating process will go smoothly. Home buyers who do not feel like they are in a position to be competitive may still be able to buy a house if they work with a capable and qualified professional.
For more information about how to buy a home in a competitive market, talk to a real estate professional. Your real estate professional can help you make a more competitive offer. If the time comes to negotiate, a good real estate professional will be comfortable negotiating with the seller's real estate agent.
To get started purchasing a home, contact a qualified real estate professional today.