When buying a home in a Seller's market (fewer homes on the market, plenty of buyers), we suggest that buyers should follow the tips listed below to try and beat the competition.
Work With an Experienced REALTOR®
Working with an Experienced REALTOR® is key when buying in a seller's market. Your Agent should be able to negotiate the best terms for you as their buyer client, and not the seller (On Long Island, the listing agent usually works for the seller). If you are a serious buyer, your REALTOR® should be able to communicate with the seller's agent, your terms and your offering price, and be knowledgeable about their market.
Get Pre-approved
Getting pre-approved before making an offer in a seller’s market is essential. You want the seller to know that you are serious about buying their home, and you have a professional waiting to get you a commitment on a loan. You want them to know that you are ready for the transaction to start. Let the seller know you are a strong contender.
Don't Put Off Seeing The House
If it's a seller’s market, don't wait to see the house because the weather is bad or you don't feel like going out today. Nice homes in good areas go quickly in this market. We've seen it all too often...the good ones go FAST!
Don't Have Lots of Contingencies
Sellers in this market are probably getting lots of interest in their homes. If you like what you see, and if possible, don't combine lots of contingencies with your offer. Cash is king, but many buyers need to get a loan and that's okay. The better the terms, the more interested a seller will be. If you need to sell your present home first, get it on the market. A seller is going to be more intrigued with a buyer who already has their home listed. Here on Long Island, sellers do not pay the buyers closing costs. So when you present an offer, don't ask the seller for this. Be flexible with the seller’s needs, and your offer may stand out above the crowd.
Don't Give A Low-Ball Offer
In a seller's market, low-ball offers will not be considered. You'll only be wasting your time, your agents time, and the sellers time. If it's really a "hot" property, and you are really serious that this is the one, make your best offer. However, don't be surprised if there is a bidding war. You may want to search below your maximum budget so as to leave room in case of an over-asking bidding war. We have been in situations where our buyers have offered over asking price to clinch the deal. Come in strong upfront.
Trust Your REALTOR®
If you are working with a REALTOR® you trust, and you should be...listen to their advice. Most Agents rely on referrals for future business, and want to earn your trust. Listen to their recommendations. It may be the difference between losing your dream home, or your having your trusted Agent getting you to the finish line!
On Long Island, Work With Lawrence and Sheila Agranoff
Lawrence & Sheila Agranoff are Premier REALTORS® who have positioned themselves on the cutting edge of the industry and have achieved an incredible presence in the Long Island Real Estate Market because of their sales experience, communication, perseverance, knowledge and understanding. If you're looking to make the move, call Lawrence and Sheila today.
Cell: 631-805-4400
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