Tips for Home Buying in a Seller”s Market

Buying a house in a seller’s market can be a real challenge. A seller’s market means that you’re at a disadvantage, leverage-wise. It means that there is a high demand for real estate in the area that you are looking, but that there are a limited amount of sellers. This, in turn, means that the seller has the upper hand – they are more likely to have multiple buyers bidding on their property. You’ll have more competition and less of a chance to negotiate on the price.

However, this doesn’t mean you have to overpay or that you’re never going to find what you’re looking for. The following are a few tips to help you buy a home in a seller’s market:

Get pre-approved for a mortgage before you go house hunting

When you get a mortgage pre-approval, you’ll know exactly how much you can afford. When you make a bid for a home, the seller will consider you a much stronger candidate over any buyers who haven’t gotten a mortgage pre-approval because they know that you can back your bid. If you don’t get pre-approved for a mortgage, you may be in for a unpleasant surprise if you don’t qualify after you’ve made a bid – or you qualify but not for the amount that you bid.

To apply for pre-approval, click here.

Make a list of your needs and your wants

Be able to separate your needs from your wants. In a seller’s market, there’s a good chance that you’re going to have to make a compromise since it’s going to be difficult to find a house that has every single one of your needs and wants – if you do, you may end up getting in a bidding war. Be willing to sacrifice some of your wants.

Use a real estate agent

A real estate agent can be incredibly helpful in a seller’s market. This is because they have numerous connections within the area and will be able to not only help you find what you’re looking for as well as guide you in terms of whether certain houses are priced properly, but they’ll also be able to let you know as soon as new properties are put on the market, thereby giving you a head start over other buyers.

Be careful about getting into bidding wars

Always stick to your budget when you bid on a house. The last thing you want to do is get yourself into a bidding war and end up going way over your budget. Bidding wars are tough because you don’t want to lose – but in some cases, you may have to cut your losses and move on.

Sweeten the deal

If you’re competing with another buyer, there are ways to gain an advantage. For example, paying in cash, waiving mortgage or inspection contingencies or go without a seller-provided warranty.

Use these tips to navigate a seller’s market. For financial advice concerning the purchase of a home, such as home mortgage advice, be sure to contact Alex Echeandia today.

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