Seller’s Market Strategies for Homebuyers
This is a guest blog post from real estate agent Robert Throneburg of RE/MAX CORNERSTONE in Westland, MI.
If you’re looking to purchase a new home, you’ve probably heard about the current seller’s market at least once or twice. A seller’s market means the people selling their homes have the advantage when it comes to home values, negotiations, bidding wars and more. As a real estate agent, I’m able to see what seller’s markets look like from the perspective of both a buyer and a seller, and I wanted to team up with Ross Mortgage to make sure you’re entering the market with confidence and highly competitive offers.
So, how can you get ahead of the game as a prospective buyer? Here are a few strategies that can help you navigate the seller’s market like a pro.
A pre-approval is necessary before placing an offer. Because of the seller’s market, being pre-approved will make your offer more enticing and let real estate agents and sellers know you’re serious and ready to buy. This can also shorten the time it takes to close the loan, which is important. In some cases, sellers are depending on the sale of their current home to be able to put money down on their new home, which means they want their home to close as fast as possible to not get tied up in the loan process.
Be willing to negotiate – and act fast!
If you’re a homebuyer entering a seller’s market, you could be going against some tough competition when trying to purchase a home you’ve had your eye on. To make your offer stand out among the rest, be willing to budge or consider negotiations when it comes to contingencies. If the appraisal comes in a couple thousand dollars short, some buyers are willing to guarantee they will cover some of the costs in order to get their offer accepted. While these strategies may not work for everyone, and I’m not suggesting that you have to do these things in order to buy a home, it’s important to keep them in mind to understand what others might be doing to get a leg up in the market.
Be ready for a bidding war
While no one wants to get involved with a bidding war, there’s a chance you might have to if you’re looking at a house with a lot to offer. Above all else, you need to be prepared for it and bring the highest and best offer you can to the table. Always put your best foot forward and do it for a house that you love, not that you like. I like to make a list with my buyers of all the must-haves they’re looking for in their new home. If we visit a house and it doesn’t check off a majority of the items on your checklist, you might want to wait until you find “the one” to enter a bidding war.
Consider a cash offer
As I mentioned above, many sellers are looking at your offer as more money to put toward their next down payment. Whether you have to dip a little further into your savings account or ask mom and dad for a little financial assistance, a cash offer will always beat out any other type of financing offer. Making a bigger earnest money deposit will also tell the seller you’re a serious buyer with a higher stake in the game.
Work with a trusted real estate agent
Regardless of whether it’s a seller’s or buyer’s market, you always want to make sure you have a trusted and experienced real estate agent who is familiar with the area you’re buying in to guide you through the process. Not only can they help you when it comes to negotiating offers and finding the perfect home for you in the area you desire, but they can also help you understand the city inspection guidelines, appraisal guarantee information and other nuances specific to that community.
Don’t get discouraged
Because it’s a competitive market, you might have to submit a few offers before things go your way. Eventually, you will find a house you love, and your offer will get accepted. Just remember that everything happens for a reason, and your real estate and mortgage lending teams are with you to guide you on your journey to homeownership – no matter how long or short it may be!
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Robert Throneburg is a real estate expert serving all of Wayne County, Michigan, with all of your buying and selling real estate needs. He works hard to sell your home fast and for top dollar or by getting you into your perfect home for little to no pocket money and the least amount of stress.