Competing in a Seller’s Market: Homebuyer Guide
Competing in a Seller’s Market
The housing market is HOT! Home’s are receiving multiple offers after being listed on the market for just a few hours. Many potential home buyers are frustrated with the competition and all of the challenges that a seller’s market brings. If you are looking to buy a home in a competitive market, you should be well prepared.
Use these tips to help you navigate the home buyer competition:
1. Recognize the Market Trend
It is, what it is. We outlined the differences between a buyer’s and seller’s market in our last blog article. When you are looking to buy a home, it is important to know what type of market you are in.
In a seller’s market the buying process can move more quickly, offers are more competitive, and there are a number of other potential buyers who would gladly take your place. It’s important to recognize that the dynamic of supply and demand will play a role in your home buying strategy.
Being prepared will help you stay calm in the face of the seller’s market competition.
2. Know that Time is of the Essence
We would never advise you to rush into buying a home without considering all of the details involved. However, in a seller’s market things move quickly. You will need to be prepared to make decisions on whether a home is right for you or not within a reasonable amount of time for the market conditions.
Get organized, know what you are looking for, and the flexibility of your budget. When you have considered which features of a home are most important, it can be easier to make a confident decision quicker.
Consider using our FREE printable “Home Search: Wants & Needs Checklist” to help you prioritize your home preferences and must haves.
3. Be Confident that you Are Financially Prepared to Buy
Getting pre-approved for a mortgage should be the first step you take towards becoming a home owner. Unless you are prepared to pay cash in full for the home you want to buy, being pre-approved is the best way to show that you have your finances in order and are ready to buy.
With your offer, you should include your official pre-approval letter from your lender. This shows the seller that your financing is in line with your offer and that you are a serious buyer. In a seller’s market potential home buyers who are not pre-approved are not likely to have their offer chosen from the competition.
Read more about “How to Get Pre-Approved for a Mortgage” in another helpful blog article for home buyers.
4. Be Prepared to be Flexible
In a competitive seller’s market the current home owner is likely to have a number of offers on the table. The most attractive offer may not be the one with the highest purchase price. Remember to be considerate of the seller’s time and convenience. Having the expectation of a rigid timeline, demanding costly repairs, or asking for additional seller-paid closing costs are not winning strategies.
Read more about “Ways to make your offer more attractive without going over budget” here.
5. Keep a Sense of Optimism
Buying a home in a seller’s market can sometimes be frustrating, exciting, and disappointing all in the same day. There are many variables involved in buying a home and when there is competition in the market, those variables are multiplied. Keeping a sense of optimism will help you focused on your goal.
Consider these actions to help yourself stay focused:
- Talk to your Realtor about their experience and potential strategies, they navigate the housing market on a daily basis and can be an asset to you.
- Practice some self care to check in with your stress levels during the day.
- Know that you have prepared for the challenges of a sellers market and have done what you need to be ready for the competition.
We are here to be the mortgage experts on your team. Our goal is to see you realize you dream of becoming a homeowner. Reach out to us with your questions and take the first steps towards getting pre approved to buy a home.