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"Don't wait to buy real estate, buy real estate and wait" - Will Rogers
Even in a seller's market, buyers can be successful with their real estate purchases.
A seller's market happens when there's a shortage in available home inventory on the market or more potential buyers than homes.
There are many reasons people choose to buy real estate in a seller's market including:
1. Narrow Down Your Wish List
Be realistic with what you want and need out of a home and make a priority list. You won't have a lot of time to make decisions, so having set criteria you can weigh each home against, will help save time and stress.
2. Be Ready to Act Fast
In a seller's market, there are often many buyers viewing the same home and multiple offers on the table. As a buyer, you have to be fast. You have to watch as homes hit the market, be ready and available to view right away, and make a decision on putting in an offer quickly, too.
3. Be Prepared
Make sure you have a finance letter or commitment letter proving you are a strong candidate and can financially afford this home. Plus it shows you are prepared. Home inspections are also something we never suggest you go without. However, in an effort to make a stronger offer, we're sometimes able to arrange a home inspection prior to the sellers accepting and reviewing offers. Yes, you will be spending about $500-$600 prior to submitting an offer but it will also tell you if the home is worth what we offer and what might need to be done when you move in.
4. Set Your Sights and Your Budget Accordingly
In a seller's market, homes often sell over list price, and in popular price points and neighbourhoods, often well over list price. What this means is that you shouldn't begin looking at the top of your budget, as you may end up priced out of those homes. As an example, if you have a maximum budget of $500,000, you will want to look at homes priced around $400,000-$450,000 rather than homes priced higher.
5. Be Open & Patient
It's easy to fall in love with a home, but try not to get too attached as you could either end up with a broken heart or even potentially over pay. Often in a seller's market, buyers will make offers on several homes before they win 'the one'.
6. Write A Personal Letter
If you really want a home, sometimes it can help to write a letter to go along with your offer. By sharing how you feel about the home, or why you are the perfect buyers you may make a connection with the sellers that goes beyond price or conditions. After all, the sellers have a personal connection with their home and may want to know that the next buyers will love it just as much as they did.
7. MOST IMPORTANTLY: Use An Experienced REALTOR®
Experienced realtors® are well-equipped to help buyers in any market; however, in a seller's market they have a big advantage. They've been through market cycles and have learned 'trade secrets' along the way. They know how to advise you on making your offer as clean as possible so it stands-out in a multiple offer situation. This includes advice on what conditions are necessary on your offer and what can be removed, ensuring flexibility on moving dates, perhaps suggest a shorter time frame to remove subjects, and ensure your first offer is your best offer).
When you have an experienced real estate agent on your side, they'll offer the right advice every step of the way so that you can successfully buy.
