Making an offer in a Seller's Market
In a seller’s market, you will have to play the game slightly different than you would in a buyer’s market. In this type of market, there are many buyers who will want to buy homes that are attractive and priced within their budget. Homeowners will have their pick of offers to choose from so your offer will have to stand out in more than just price.
When looking for a home in a seller’s market, you should:
- Make an offer that is close to the asking price or slightly over
- Send a pre-qualification letter from your lender with the offer
- Choose a closing date that is sooner rather than later
- Do not ask for too many contingencies
- Send a personal letter
- Promise more of a down payment, and
- Use a real estate agent that gets things done quickly
In a seller’s market, you may also want to think about the dangers of buying a home. If you make an offer that is too high and you find out later on, that the mortgage payments will be a struggle, you may have to sell. But remember if you overbought for the house selling could be a nightmare and you might have to sell at a loss. Try not to get emotional with the house, when you find the right house figure out what the max price you will financially be able to afford. If the price goes above your max, know that this house is not the one for you. Most often when your offer isn't accepted you will find a better home at a price that you are comfortable with; I see this all the time.
When you decide to buy a home you should be looking at your financial situation, the market, and the asking price for the homes you are interested in making an offer on. If you can wait a few months to see where the market is headed, then maybe this is the best way to save more money and find a home that is affordable. This is a waiting game that no one wants to play, but may be necessary, esecially if this is your first home purchase.
Seller’s markets and buyer’s markets have their advantages and disadvantages, but in the end, the offer that you make will determine whether your offer will be accepted. And remember there is always another house out there, don't get discouraged, in time you will find your dream home.
Not sure how much you can afford? Get prequalified today by clicking here!
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