A seller’s market is simply a matter of economics. Inventory is low and demand is high. Home process have been consistently going up across the country, according to date from the National Association of Realtors. The median existing-home price is up 6.3% from 2015. Housing inventory is 3.6% lower than it was a year ago. Mortgage rates remain low, giving consumers incentive to shop around for mortgage lenders and homes. It’s still possible to buy a home in a seller’s market, though obviously more difficult than in a buyer’s market or otherwise. Here are four tips for buying a home is n a seller’s market:
BE PREPARED! Have your proof of funds and pre-approval ready. Don’t wait. As soon s you determine this is the house for you, get your offer and pre-approval letter sent over ASAP This lets a seller know that you are both qualified and motivated.
MAKE YOUR BEST OFFER FIRST! In a strong seller’s market, it is recommended to make a list price (or more) offer quickly to prevent competitive interest.
MONEY TALKS! Show a seller how serious you are by offering more cash than normal in Earnest Money (a deposit made to the seller held by Title or realtor brokerage trust) to show a buyer’s good faith in a transaction. Typically 1% of purchase price.
OFFER NON-PRICE FACTORS! Some sellers will accept your price if you provide some non-price considerations that can speed of the transaction, also called contingencies. In a strong market a buyer needs to consider waiving some of the typical contingencies, having the inspection period limited to 3-4 days (instead of the typical 10-15), having a later sales date, or offering a lease back option so the seller has time to find a home and close.
If you have more questions about navigating being a buyer in a seller’s market use the contact form to send us a message.
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