Buying a home during a seller's market can be extremely tricky, prices are high, inventory is low, and homes are selling faster than we can see them.
So when is the right time to buy? When you're ready. That's the simple and most honest answer anyone can give you.
Buying during a Seller's Market may make things a little more complex, however, we've put together a few tips to help you find the right home at the time that's right for you:
Expand your search
The price of homes is always higher in the trendy neighbourhoods, but if you're willing to expand your search area a little, you may find an excellent property on the outskirts of your desired area for a much more affordable price. Another tip is to look at areas that haven't been through the gentrification process yet, you could find an excellent deal here and watch your property value increase over the years as the neighbourhood improves.
Customize your Offer to Purchase
It's not always about the price, some venders want to sell and move out as soon as possible, whereas others may want to have an extended closing date or an opportunity to rent-back the property until they can find a new home. Have your agent speak to the selling agent to find out what the vendor's goals are, aside from price.
Forget the low-ball offers
Unfortunately, a seller's market is not the time to be making low-ball offers. Chances are, the vendor will receive multiple offers, each of which will be asking price or more. Offering below asking price is a great strategy in a buyers market, but when homes are selling in a day or two of coming onto the market, the chances of this working in your favour are extremely low.
If possible, make a cash offer. Sellers prefer cash offers as they can close faster and they eliminate any chance of the mortgage not being funded. Cash offers also give buyers a little more negotiating power with regards to closing dates, prices, and inclusions.
Get pre-approved by your lender
If other offers coming in are equal or similar, a seller will likely choose a buyer who has been approved as this means a better chance of the loan being funded and the transaction closing in a timely fashion.
A Seller's Market can be very frustrating for a buyer and you may feel pressured to buy a home quickly, however, JP Real Estate is here to help you choose your next home confidently, on your terms, and when you're ready!
If you have any questions or would like some guidance in regards to the real estate market, please feel free to contact me at your convenience, I'm always available.
As always, JP Real Estate is looking forward to being of value to you. We are more than a real estate company, we are a community, a friend, and a family. We look forward to connecting you with greatness!