With mortgage rates having dropped to incredible lows, 2020 was a great time to buy a home, and 2021 should kick off the same way. However, with so many people interested in buying, home sellers have been at an advantage in many real estate markets. Buying a home is still a smart decision for many people now, but in a seller’s market, you’ll need strategies like the ones below to help ensure your home purchase is a success.
Make a strong offer
Naturally, you want to pay the lowest possible price for your new home. However, a seller’s market may mean you’ll have to bid a bit higher than you would otherwise to get your offer accepted and beat out any competing buyers. Work with your real estate agent to make a competitive offer based on the asking price, the appraisal and market conditions. Winning bids are usually close to or higher than the listing price in a seller’s market.
It’s smart to take your time on one of the biggest purchases of your life. However, in a seller’s market, you will need to make quick decisions before other buyers have the chance to snatch up a home you’re interested in. That’s why it’s important to know what you want before you start shopping so that you can immediately move on a home that’s perfect for you. Make a wish list of your wants and needs, including location, size, price range, number of rooms and other factors. Have a plan to move into the new home so that you’re ready if the seller wants to close quickly.
Since you’re likely to be up against competing buyers in a seller’s market, you need to be prepared to stand out from them. First, make sure you’re preapproved for home financing so you can show sellers that you’re serious about buying and can reliably finance your purchase. Next, be prepared to bid against offers from other homebuyers, and make sure you know the strategies for winning a bidding war.
Don’t give up
There’s a possibility that your offer may be declined. Don’t get discouraged! Learn from your experiences and keep moving forward. Stay positive and continue your search until you can close on the right home.
Even when you’re buying in a seller’s market, you can still have an enjoyable homebuying experience, find a great place for a fair price and take advantage of the benefits of homeownership. Following the strategies above will help you do just that. If you’re considering buying a home, get in touch today to learn about your financing options and get preapproved!