It is a tough time out there to be a buyer. I totally sympathize. Buying in a seller’s market is not for the faint of heart. The real estate market has been a sellers market for some time and even more so now. And it is crazy out there. Here in Fayette County, Georgia, we have a really a low inventory . There are only about a third of the houses on the market than we normally see. That means that there are WAY more buyers than sellers.
If you see a home come on the market that you like, chances are, there are a ton of buyers out there that also like that home. Especially at lower price points, multiple offers are the norm, although even houses that are at a higher price point get multiple offers on a regular basis. One of my listings in Peachtree City had 5 offers within 24 hours and ended up selling for $520,200, more than $5,000 over asking price.
It makes it hard to compete, and that is why you have to have a solid strategy before you start shopping for a home.
Three Tips for Buying in a Sellers Market
#1 Be Quick
In this seller’s market, when a house is listed, it is sold in a matter of days, if not hours. So you want to make sure that you are one of the very first to actually see that house. Chances are that there are other buyers that are seeing that house, and that are making an offer. If you want to wait a couple of days before you even see that house, it is gone. You have to be on the ball, so when that house hits the market, you are ready to go see it and make an offer.
#2 Be Prepared
Be prepared to make that offer, which means that you have to be pre-approved. You have to have a lender ready to go. And if you have a good local lender, who the seller is more comfortable with, you are in a stronger position. If your lender lets you, you can even get yourself pre-underwritten, which is even better than getting pre-approved. In that case, the only thing you need is an address. Sellers really like that, because they can feel confident that the sale will go through and close. Be prepared to make that offer and make it a good one. Be prepared with your lender so that you know where you stand, and you are comfortable to make the highest offer that you can.
#3 Be Flexible
Buying in a seller’s market means you have to be flexible. For instance, find out what closing date the seller is looking for and try to accommodate them. They may want to close quickly, but maybe they want to close a little later. If you know that, and you can be flexible with that, that will give you a leg up.
My clients wanted a home that already had offers on it, but they didn’t want to get into a crazy bidding situation. So I asked the listing agent what was important to the sellers, and when did they want to close? Turns out they were building a new house and it wasn’t going to be ready for a couple of months. We accommodated their desired closing date and got our offer accepted over another, higher offer.
You could also put in a little bit more earnest money to show the sellers you are serious. Another thing that you can be flexible on is contingencies, like making the due diligence period a little shorter. Try to shorten any financing, appraisal contingency, just to give the seller more confidence that your offer is the best.
Buying in a seller’s market is not easy, but it can be done with some creativity. Get your ducks in order, and be prepared to move quickly to get your best offer accepted. Of course they are not the only strategies to help you be a successful buyer in a sellers market. I’d love to be by your side and put my strategies to work for you!
Are you ready to discuss in more depth what it takes to buy in this competitive market? Book your free, no obligation consultation at talkwithdaphne.com.