The process of buying a home can be a challenging experience, but in a seller’s market, it can be even more so. In addition to the higher prices and the need to make quicker decisions, you’re likely to face some serious competition from other buyers.Here are some tips to help you navigate through the process:
- Get Pre-Approved
By obtaining a pre-approval for a mortgage before you start your home search, you’ll know how much buying power you really have. A preapproval will give you a price range to work with and it can also make you more competitive.
- Choose an Experienced Real Estate Agent
It is already difficult to navigate a real estate purchase without a real estate agent in a normal market but it will be extremely difficult to get the house you truly want in a seller’s market without an agent by your side. You should be looking for an agent that not only has proven their expertise in the local markets, but someone who is highly responsive, efficient, and will work hard for you to get your dream home at the right price.
- Establish Price Discipline
Before you start shopping around for homes, set firm and realistic limits for yourself on how much you’re looking to spend. If and when a bidding war happens, it’s very easy to get carried away In this competitive seller’s market. You’ll need to make quick decisions and it’s much easier when you have an agreed-on price in mind before going into these situations.
- Be Willing to Compromise
When the demand for homes is high and the inventory of homes is limited, it’s not the best time to be looking for a home that checks everything on your wish list. You will need to prepare yourself to adjust your expectations so you are not disappointed by the reality.
- Be Prepared to Compete
In a buyer’s market, you could possibly get away with submitting an offer that’s below the asking price. But in a seller’s market competing buyers often bid above the initial asking price to ensure they will get the home, so if you want to stay in the game, your bid should be close to if not higher than what the seller’s asking price is.
Work with your real estate agent to set realistic expectations, make a bidding plan, and to develop a winning strategy.