A BUYER’s Guide to a HOT SELLER’s Market
Imagine this: You’ve just walked through the front door of a beautiful home, newly listed for sale. The size is perfect, the neighborhood is ideal, and it’s within your price range. There’s just one problem – there are many other potential buyers, in fact, they are lining up outside ready for their turn to get inside! They all seem to love it as much as you do, and by the end of the day, multiple offers prove this to be true.
Believe it or not, this is what buying in a seller’s market can be like. These so-called “hot markets” are where housing inventory is low and prices are relatively high. And while these conditions are prime for sellers, they can make the process more challenging for homebuyers.
However, for many, buying a home in these markets is a battle worth fighting for – especially as rent prices continue to climb and interest rates remain near historic lows.
To navigate a seller’s market, you’ll need to beat out the competition. Fortunately, we’ve got some tips to help position yourself for success and find your perfect home.
Tip #1: Get Preapproved
Buying a home is a two-way transaction. As much as it may feel like it’s all about you, remember that there’s a lot at stake for the seller, too.
Here’s where GPS can help! Getting pre-approved, or having your lender verify your ability to afford a home loan for a specific amount, lets the seller know you’re qualified—and motivated. It demonstrates financial security, giving the seller confidence that the sale will go smoothly with you as the buyer. The process is different than getting pre-qualified as pre-approval requires documentation and is not based on estimates. In fact, in the current market conditions here in the Hudson Valley, NY, it highly unlikely that you will even get an appointment to see a listing if you don’t come armed with your Pre-Approval. Get in touch, we’ll be happy to assist, and we can do this in hours, not days. He who hesitates loses the house!
Tip #2: Hire an Experienced Team, not just a single agent
Hiring an experienced Local Area Specialist, who is a certified PSA (Pricing Strategy Advisor,) could give you a serious advantage when buying a home in a competitive market. The team at Global Property Systems consists of a group of experts all working as one for you and has a proven track record of winning offers, you need only see the number of closed deals we have done to prove it. We also know about listings as soon as they hit the market, and as our client, so will you. In a seller’s market, things move quickly. GPS team members are on the frontlines, keeping you in the know at all times.
Tip #3: Act Fast
In a seller’s market, a listing today could be a memory tomorrow, which means you can’t always wait for that weekend showing. Try to be flexible and make yourself available for showings as listings become available. If that is impossible to achieve due to your family or work commitments, one of our Local Area Specialists can go and walk you through using Facetime (or similar technology.) We’ve arranged many successful sales “Sight Unseen.” We can even put you in touch with those clients who trusted us to secure their new homes’ in this manner.
After you’ve seen a home and you’re comfortable moving forward, consider submitting an offer on the spot. GPS is able to begin the negotiation process onsite with the buyers stationed outside. This way, you can modify the offer if needed to expedite the process.
Tip #4: Place a Fair Bid
No one wants to pay more than necessary for a new home. But you also don’t want to risk losing the right house by submitting a lowball offer. GPS has the technology to research comparable home sale prices in the area to determine an offer strategy. At the end of the day, you have to be comfortable paying what you offer, and we want you to be our clients for life, not just a one time deal.
Tip #5: Make an Attractive Offer
There are several techniques to help your offer stand out among others. Here are just a few:
If possible, consider putting down a larger deposit. It communicates to the seller that you’re serious about the transaction.
Reduce hassle for the seller by agreeing to terms that make their transition easier. For example, if there’s a swing set in the backyard they’d rather leave behind, let them! If it helps move the sale forward, it could be beneficial to remove it yourself.
Be flexible with the closing date to accommodate the seller’s schedule.
It all really comes down to demonstrating your seriousness and willingness to make the process easier for the seller.
We are here for you. There are many ways to skin a cat! Just as the Highest Offer isn’t necessarily the BEST offer. Our experts will explain how to “Pitch” the BEST offer and the advantages to you and the seller in doing so.
Tip #6: Write a Personal Note to the Seller
Many people develop an emotional attachment to their home, and sometimes moving can be difficult for the seller. Show them that you’re both serious and emotionally invested in this sale by writing a personal letter to them. Tell them why you love the place and how you plan to take care of it. The seller may be glad to know their former property is in good hands, giving you some leverage in the situation. If you do decide to write a letter, you must ensure you don’t break any fair housing regulations in doing so. Our team will ensure you don’t make any legal mistakes in doing so.
Tip #7: Decide Where You Can Compromise
Everyone has an image of the perfect, move-in ready home. Although when you’re searching in a hot market, it may not be easy to find. Do some soul searching and consider what matters most to you in a new home. Is it the size? The style? The location?
Once you’ve figured out your must-haves, then consider making compromises on those less-important features.
Tip #8: Be Patient
You may encounter some stiff competition out there. Above all else, stay focused on your goal, and try to be patient. The right home is out there. Equip yourself with these tips and soon you’ll be the one packing moving boxes!
No matter what market you’re shopping in, let GPS help you get into your dream home.
Stay tuned to our blog for more helpful home buying and mortgage tips and register at www.SearchHomesinNY.com to ensure you get the listings 1st before they ever hit the national portals like Zillow, Realtor.com etc.