Things to Consider Before Buying a House in a Seller's Market
In case you haven’t heard, it’s a hot seller’s market right now. The housing inventory has never been shorter and the interest rates have never been lower, which has led to low supply and high demand. There just aren’t enough houses on the market right now for the amount of buyers, so houses are selling for significantly over asking price and buyers are continuously losing out on bidding wars. Major buzzkill, I know.
If you’re thinking about buying a house right now, here are 5 tips to consider first:
Have all your ducks in a row. Make sure you are already pre-approved and have everyone on standby in case your offer gets accepted. Your real estate agent, mortgage lender, attorney, home inspector and title insurance company should all be locked and loaded. When submitting your offer, you should include the names of your dream team so the listing agent and seller know you are serious and ready to go.
Find out what’s important to the seller. Do they need extra time to move? Did they raise their family in this house and might feel inclined to sell to someone who is doing the same? Ask the listing agent for as much information about the seller as you can and use that information to your advantage. You may be surprised to find out that price isn’t always the most important thing.
Be prepared to offer above asking price. It no longer makes sense to play the negotiating game where you lowball the seller and hope for the best. That’s not going to cut it anymore. Most houses are selling for above asking price, so you need to be prepared for that. You can choose to waive the appraisal contingency which means if the house appraises for less than what you offered, you are willing to pay the difference out of your own pocket. You can also shop for houses below your budget so you have that wiggle room to work with.
Don’t ask for repairs. To make your offer more appealing, let the seller know that you will not ask for any repairs. However, you should ALWAYS get a home inspection so you know exactly what you’re getting in to, but in this market, be prepared to cover the costs of repairs yourself. If there is anything very alarming such as a structural issue, then you can still address it with the seller before you go under contract.
Be patient, but act quickly. If buying a house right now is really your goal then don’t give up. Be patient and try not to get discouraged. The right house will come along, but when it does, be ready to pounce! Schedule showings immediately and submit your offer right away. You have to be willing to do whatever it takes to make your offer stand out and prove you’re the perfect buyer.
If you’re not ready to take all these steps, then you may be better off waiting until the market shifts. Buying a house should be exciting, but it’s easy to become stressed in this market when so many factors are out of your control.
If after reading this, you still want to buy, then bravo to you! As long as you put yourself in the best position to succeed, the right house will come along. Not all buyers will take these steps, but now that you’re better informed, you can stay ahead of the curve.
Still have questions? Feel free to reach out to me. I’m here for you.