Buying a home can be tricky at the best of times. It is often even harder in a seller's market. A seller's market means that there are more buyers than available homes. Seller's markets usually lead to higher sale prices and can even prompt bidding wars among competitive buyers. Still, buyers have a chance to make it through with a fair deal. Here's a few tips to help people rise above the competition as they prepare to buy a home.
Get Finances in Order
When sellers start to consider purchase offers, they are often looking for the most qualified buyers. People who have gone through the process of applying for a mortgage and have secured pre-approval are generally more likely to win a bid. Those who have not yet looked at mortgages may not know their chances of being able to buy a home at this price. Buyers should confirm that the lender has reviewed their income, debt, and credit before issuing pre-approval. This will give buyers a much better idea of what they can afford.
Identify Needs and Wants
In a buyer's market, people have the time they need to browse through homes and refine their preferences by looking at what is available. Seller's markets often do not allow this kind of reflection. Buyers may need to look at more homes in a shorter period of time, so they should have a firm understanding of what they want from a property. It is useful for people to prioritize what they really must have, what may be nice but not an absolute necessity, and things that they simple do not want.
Find Consensus with Fellow Buyers
Plenty of people buy a home as a couple. Even the happiest people who have been together for decades can have surprising disagreements once they go house shopping. Buyers should get together, compare their priorities, and find a way to agree on their needs and the most obvious deal-breakers. A quick decision could mean the difference between securing the home and having to go back to the beginning. If people can iron out their conflicts in home preferences before they start attending showings, they will have an easier time reaching the offer stage.
Arrange Expert Representation
Sellers usually have agents there to represent their interests in the purchase. Buyers need to have someone who can support them, especially in a seller's market. In an effort to get a purchase offer accepted, buyers may be tempted to bid too high or decline necessary contingencies like an appraisal. An expert in the purchase of real estate can help them go through their options and make an offer that is more appealing to the seller.
Be Ready to Bid Quickly
The heat of the market will determine how long buyers can take to make a decision. In some areas, properties could be listed in the morning and under contract by the end of the day. One benefit of having a buyer's agent show the home is that they can help buyers to see potential problems with the home. As a general rule, buyers should make an offer at or near list price, and keep their requests simple. In the busiest markets, preparing an offer shortly after seeing the home may be buyers' best chance to succeed.
A seller's market can be stressful for Southeast Edmonton buyers, but it does not have to be impossible. By getting prepared and making an offer that works best for sellers, buyers can minimize wasted time and get through the process more effectively.
By Justin Havre