Tips for Buying Real Estate in a Seller’s Market
Buying real estate in a sellers market is difficult. It’s a competitive market and there are many buyers out there.
Buying a home in a seller’s market can certainly be overwhelming, especially if you are not familiar with the market. Here are some tips to help you find the best home for your family while avoiding common mistakes.
Get Pre-Approval
Homes tend to sell rather quickly in a seller’s market. This is why the pre-approval process is important to complete prior to you looking for properties.
That way if you find a property you would like to make an offer on, you will already be well prepared to show your pre-approval and proof of funding.
Don’t Overpay
First and foremost, when trying to buy in a seller’s market it is crucial to not overpay for the property. When there is an increase in demand for properties, you tend to see the prices of homes get higher and higher.
However, it’s vital you keep in the back of your mind that these prices likely don’t reflect the true value of the home. This means that when it is your turn to sell the property, you may not receive your return on the investment.
Buy When It’s The Right Time
Keeping an eye on the fluctuating market will help you stay ahead of the game. If you need a property as soon as possible, then that point and time will likely need to be your time to make a move. In contrast, if you have time to wait you have a better chance of being more successful in your home buying process.
Be Flexible
Being a buyer in a seller’s market can be frustrating. You may be putting competitive offers on the table but it just seems that there’s someone out there putting in a better one. So how do you stay optimistic while still achieving your goal to purchase a property?
Being flexible is the answer.
Unfortunately, the buyer seems to be at a disadvantage within this type of market which means you may have to give a little more than you are taking. Consider placing yourself in the seller’s shoes. Would you prefer an offer for the highest amount of money with numerous checkboxes to complete such as inspections or would you prefer a competitive offer with less daunting tasks to take on.
It’s been found that buyers tend to be more successful when they waive a few contingencies or offer a larger cash deposit.
Be Personable
When making an offer on a home, it’s a nice touch to write a personal offer letter for the seller to consider. Providing the seller with a clear expectation of what you as the buyer envisions this property being can really put you at an advantage.
Be sure to be short and to the point as a long drawn out letter will likely lead to a letter that isn’t even read.
Ready to Succeed in a Seller’s Market?
Now that you have a few successful tips on how to be a competitive buyer in a seller’s market, you’ll want to get started right away. There’s no time to waste in today’s market if you’re ready to purchase.
Not sure where to start? Begin with a simple search of St Albert real estate to see what is currently on the market and to get a grasp on what it is you’re looking for.
