When you’re in the market for a new home, it’s essential to know what type of market you’re entering in. And right now, we’re in a seller’s market. In a seller’s market, there’s a lot of competition between buyers and inventory is flying off the shelves. But this doesn’t mean you can’t find the home of your dreams! Here are a few tips on how to survive a seller’s market and have a successful house hunt.
Before you even begin the house-hunting process, get pre-approved for your mortgage. Is it necessary? No. But it is highly recommended. And in a seller’s market, you need to be as prepared as possible.
You may have also heard the term pre-qualification when it comes to your mortgage. In this case, though, you’re going to want to get pre-approved. With a pre-qualification, you provide an overview of your finances, income, and debts to a mortgage lender, and in return, they give you an estimated loan amount. Pre-approval is a more in-depth look at your finances and a lender has checked and verified the documentation to approve a specific loan amount. With a pre-approval, it will show buyers you are financially capable of buying a home and make them feel confident with your offer.
When the pickings are slim, it’s important to remain flexible. If you place too many limitations on the real estate market, you might make it more challenging to find a home. When you widen your horizons, you will get introduced to new homes that you wouldn’t have seen or considered otherwise. If you’re hesitant to look outside your boundaries, you might also consider compromising on what your home includes. This can mean giving up something like a desired feature in a home to stay within the area your set on. Whichever way you choose, remaining flexible or compromising on a few things, could mean finding a gem of a home.
Time is of the essence in a seller’s market. With so many buyers looking for homes, you need to make sure you remain readily available and open for communication with your sellers. Try and be open and available at the seller’s convenience, not yours. If you feel like the home is a fit, be prepared to make a move and follow up promptly. Make it a goal to respond quickly and follow up on requests. Communication is important not only for timing but to build a rapport with sellers. This can be the difference between getting or missing the property you want.
Don’t Play Hardball
Now is not the time to play hard to get. In a neutral market, a typical scenario might include a buyer making an offer below the seller’s asking price and then negotiating from there. But in a seller’s market, there’s little to no negotiating as a homebuyer. You need to put your best offer on the table. Owners will see five, 12, maybe even more offers all at once. They won’t need to write a counter if you lowball them. They’ll just go and pick the very best offer they have available to them, leaving you in the dust. Be sure to put in a strong offer that you as the buyer are comfortable with as well.
Find an Experienced Real Estate Agent
In a hot market, it’s particularly important to have a good, experienced agent. You want someone who’s in the know about a listing as soon as it hits the market, and can make your offer really stand out. When the market is competitive, you need someone on your side who will constantly be on the ball.
That’s where Crowe Realty agents come in! A seller’s market might seem intimidating, but our agents are ready to be competitive and find you your perfect home. We’re happy to help and guide you through the entire process in the Montrose, Colorado area.