When this happens, houses usually are sold quickly and buyers often pay a higher price than usual. If you are trying to buy in a seller’s market, here are a few tips to help you get your dream home.
1. Have your paperwork ready.
With so much competition from other buyers, you'll want and need to make sure you stand out. Submit your pre-approval paperwork when you place an offer to show that you can afford the house.
2. Be flexible.
Sellers don't want people coming through their homes during all hours of the day, so try to be available when they are. And when it comes to move-in dates, listen to what the seller needs. Allowing a few extra days for the seller to move out can make you stand out among other buyers [1].
3. Make it a priority.
When you're in the market to buy and it's more of a need than a want, you'll need to treat it like job hunting. Look into houses as often as you can and inquire about houses you are interested in. And when you ask the seller for a tour, request their earliest convenience, not yours. Be sure to follow up on the homes that you are interested in [2].
4. Avoid additional requests.
A seller's market is not the time for you to ask for the washer and dryer or for a lower price. There will most likely be another buyer who is willing to offer the full asking price with no additional requests of the seller. Be prepared to accept what they are offering up front [3].
5. Connect with a listing agent.
Ask your broker or agent to contact a listing agent to see how many other buyers they are expecting to have. Based on this, you can decide how competitive to make your offer.[3].
6. Consider an earnest money deposit.
Earnest money is “cash provided by the buyer, ranging from 1 percent to up to 5 percent of the purchase price that gets held in escrow until the sale closes.” By providing earnest money, the buyer is assuring the seller of their commitment to the sale [1].
Sources:
[1] How to buy a home in a seller's market, Washington Post
[2] Surviving a Seller's Market: The Ultimate Cheat Sheet, Realtor
[3] Tips for Home Buying in a Sizzling Hot Seller's Market, Abo
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