Shawn DeLaat
The conditions of the local real estate market can have a significant impact on the approach of both buyers and sellers. Knowing the difference between a buyer’s and seller’s market can help you understand the local conditions and set expectations for your experience. This information is beneficial for developing the best strategy for both buying and selling a home and getting the most value out of your transaction.
While there are undisputed benefits that come with buying a home in a buyer’s market, it does not mean that it is your only option. We know that life does not always work out the way you want it to. Buying a home in a seller’s market is definitely more challenging but that doesn’t make it impossible.
By hiring a real estate agent who is experienced and knowledgeable in the local market, you can ensure that you are kept informed about the market conditions and make decisions that best suit your needs and goals. Our team of real estate professionals at Davids & DeLaat have pooled together to help provide you with some of the best tips for buying a home in a seller’s market:
Tips For Buying A Home In A Seller’s Market
If you are buying a home in a seller’s market it is important to stay positive and flexible. It can sometimes be a difficult market to navigate and you are often faced with heavy competition from other buyers. If you are thinking about buying in a seller’s market, we always recommend having a local real estate agent that can guide you through the process and help you secure a home. Here are some tips for buying a home in a seller’s real estate market:
Get Pre-Approved For A Mortgage
A mortgage pre-approval helps you stand out against the competition and ensures the sellers that you are a qualified, serious buyer. A pre-approval means that a lender has reviewed your financials in detail and stated that you qualify for a mortgage loan, subject to certain conditions. It outlines important information such as principal amount, interest rate and term, this gives you a deeper understanding of how much house you can afford when making offers.
Act Fast
In a seller’s market, homes don’t stay available for long. It is not uncommon for homes to be sold just days, sometimes hours after being listed. If you see a property that you like it is important to act quickly and make an offer as early as possible. A fast decision and a strong offer can give you an advantage and help you secure a home.
Consider Writing An Offer Letter
There is no shortage of buyers in a seller’s market which is why it is important to stand out against the competition. An offer letter is your chance to separate yourself from the other buyers and make a connection with the seller. Take the time to write a short, but sweet personal letter to the current homeowners that lets them know what makes their home so special to you (and your family).
Consider Eliminating Unnecessary Conditions
When it comes time to put together an offer on a home you love, you can make your offer more attractive to the sellers by removing any unnecessary contingencies. Contingency clauses can include home inspection, the sale of your home, financing, appraisal, etc. While it’s important to keep your offer simple, there are some important clauses that need to be in place to protect you as a buyer. An experienced real estate agent can help assess each unique situation and advise you on which contingencies can be removed and which ones are needed.
Be Prepared For Bidding Wars
In a seller’s market, bidding wars are not uncommon so you need to be prepared. First and foremost, it is important that you know your budget and set a firm limit for the home you are bidding on. Make a strong initial offer to show the sellers you are serious about buying and try to remain as flexible as possible during negotiations. Give yourself an advantage by accepting the conditions that the seller values most (early/late closing date, contingencies, etc).
Be Patient
It is important to stay patient and not get discouraged during the process as it can be a challenge to buy a home in a seller’s market. It is not uncommon for buyers to lose a property due to overpriced bids or condition-free offers, but it is important that you protect your financial security and happiness first. You’ll be spending a lot of money on your home, and you’ll be spending most of your time there so it’s crucial you don’t make any decisions that you could later regret (in other words, don’t settle for a home that doesn’t make you happy). Be patient and find a local, experienced real estate agent who you can trust to help you find the perfect home.
Seek Professional Guidance
Having a knowledgeable real estate agent by your side can not only expedite the home buying process but provide relevant insights and advantages that others may not have. They know the pace of the market and the valuable tricks that can help secure their buyers a home. Best of all, as a buyer, your commission fee is typically taken care of by the seller so all of these advantages are at no cost to you!
Additionally, a well-connected real estate agent can help you gain access to exclusive listings that are coming soon or completely off the public market. This can be a huge advantage when trying to buy a home in a seller’s market as these sellers are often looking for fast, hassle-free sales.
Looking To Buy A Home In The Niagara Region? Call Davids & DeLaat Today!
No matter what the current condition of the real estate market is, a professional and experienced local real estate agent can help you navigate the market and secure the best deal possible. At Davids & DeLaat, we are committed to client satisfaction which means we will do anything to make your home buying experience positive. Contact us today to learn more about how we can help you achieve your real estate goals.
