When a market is saturated with buyers but has limited inventory, it is a buyer’s nightmare but a seller’s dream. To be successful in a seller’s market you must be a strategic, competitive and market-savvy buyer. Here are some pointers on how to come out with the win even if the odds are against you in the seller’s market.
Maintain Your Composure
Just because the current market demand is in the seller’s favor doesn’t mean you should lower your standards to meet and beat the competition. Quantity isn’t necessarily quality, and just because a seller may have multiple offers in the bag doesn’t mean they are above the rules of real estate. And as a buyer, don’t jeopardize your best interest for the sake of making the deal. A seller should still make every effort to show a house well and their agent should make the time to speak with yours. You should never feel pressured to buy without the completion of a thorough home appraisal and inspection; and if something comes up awry – be confident walking away. You won’t always have another chance if you make a mistake, but there will always be another home.
Be the Best Buyer
When competing with multiple offers and other potential buyers, the best buyer will win in the end. How can you be the best buyer? Know the most about the market and why a particular home is the home for you. You should have the most reputable and well-known agent at your side. An added bonus is the one who was the first to jump on the listing. Make sure you are pre-approved for a mortgage and have your finances covered to the very last closing cost. In a seller’s market, you need to be mentally prepared for the fact the house of your dreams will more than likely sell to the buyer willing to pay full list price, and maybe even a little bit above. Your offer should come with as few contingencies as possible, and what you lack in offer price you can often compensate with a quick closing process.
Just because you may have found the house of your dreams, doesn’t mean you should sit comfortably, especially in a seller’s market. You should still be actively searching, with the help of a good agent, for the newest and most exclusive listings that are not yet market news. You should always have at least two other back up options for homes, and if a seller seems to be dragging you along – cut the cord.
The success of buying in a seller’s market depends on how hard you work to prepare before you go to purchase, and how hard you are willing to work to close on your dream deal. A buyer is only as strong as their weakest teammate, so be sure to tie up any loose ends when it comes to a loan, an agent, a timeframe – they could potentially lose you a deal. If you feel like you can’t compete, perhaps it is simply not your time to buy; but be prepared to handle a little adversity in the name of making a winning deal.