Get Your Offer Accepted in a Seller’s Market
Buying a home in a seller’s market has unique challenges. You could have your heart set on a property only to find out there are already multiple orders flying in. Low real estate inventory can make the process of buying a home much longer, and you may end up putting in offers on several houses only to still be on the hunt for your next abode. It can be frustrating, and takes a little bit of the fun out of searching for a new home. But even in a seller’s market there are things you can do to make your offer more appealing than others.
Partner With an Experienced Real Estate Agent
A successful real estate agent who has experience in the area you’re interested in moving to is like a secret weapon. They’ve been through the home buying process with many to-be homeowners and they know the home buying process in and out. They know what you’re going to need, what you need to do, and when you need to do it. They are going to be your best asset from day one, and because they work in the local housing market, they know the local housing market.
Make a Clean Offer
In a buyer’s market, you can add contingencies to your offer. This may include things like asking the seller to pay the closing costs, making your offer dependent on the sale of your current home, asking for repairs, or other things you want to include in the deal. In a seller’s market, a clean offer is necessary-which means an offer with no strings attached. Don’t ask for the swing set, the outdoor furniture, or the window coverings. If another offer comes in without these requests, your offer is no longer competitive.
Have Your Financing Ready
In a seller’s market, having your financing completely arranged before you make an offer is pretty much necessary. You may need to offer over the asking price, and you definitely want to show the seller that you are a safe choice with solid financing locked in. In a seller’s market, no seller is going to take a risk on the sale being contingent on the buyer getting their approval. Go through the mortgage process and make sure you have all your financial ducks in a row before you begin the process of finding a home and making an offer.
Show Your Interest by Going Above and Beyond
While you shouldn’t pay more than a home is worth, offering more than the asking price is to be expected in a seller’s market. The seller is in a strong position and may be jugging multiple offers. While getting into a bidding war is not necessarily what you need to do to buy a house, making a very strong offer is. Offering more than the asking price, and agreeing for a stronger earnest money deposit, perhaps as large as 4-5% (The earnest money deposit, or EMD, is usually 1-3% of the purchase price to be held as a deposit). This will help prove to the seller that you are committed to the home purchase and a safe choice.
Make a Connection
Money talks, but when there are several offers for similar amounts, personal connections can often tip the balance in your favor. Include a letter that tells the seller why you love the home. Have you dreamed of living in the neighborhood? Think that they’ve created your dream kitchen? Want to be the next generation to start a family in the home? Whatever you love about what they’ve created, put it in writing (your agent can be a big help here, although speaking from YOUR heart is stronger than relying on the “perfect” letter). Appealing to the seller’s humanity could give you an advantage.
Buying a home in a seller’s market can be a challenge, but it can be done. If you’re looking for an experienced, successful real estate agent to help you buy a home, contact Amberwood Real Estate today.