As the market fluctuates, there are times where it may be better for the buyer or it may be better for the seller. It is important to work with a professional who knows how adapt to either situation to get you the best results possible. Here are our tips for buyers purchasing a home in a seller’s market:
1. Be ready to make your best offer.
We all want to get everything we want for as little money as possible. So naturally, when we see a listing price, we tend to wonder what is the lowest price we can get the house for. Offering lower than asking is a fine strategy in some cases. For example, the home may be overpriced compared with other similar homes in the area, or their may be a lot of other homes available. However, this strategy will definitely not work in a seller’s market. When inventory is low, it is safe to assume that the seller will probably receive multiple offers, so it especially important to come out strong.
2. Don’t wait to put in that offer.
We all know that impulse purchasing is never a smart move, however, overanalyzing a home purchase can be just as detrimental. If you wait too long, the home could easily be under contract or pending by the time you decide to make your offer. Once you’ve decided what kind of house you want, a location that suits your lifestyle, determined your price range, and find a home that meets your needs, don’t wait-put in an offer.
3. Don’t work with someone inexperienced.
In this type of market, buyers benefit from getting all the help they possibly can. Working with an experienced agent, you are likely to have a better chance of getting your dream home. And don’t worry, in most cases, the sellers pay the real estate agent, so you can get high value expertise at no additional expense to you.
4. Get prequalified.
You might know that you’ll be approved for a mortgage loan when it comes time — but in Arizona, it is required that you be prequalified before making any steps in the process of a real estate transaction. Plus, being prequalified is the only way to prove to the seller that you’re a qualified buyer, and it shows them that you are serious. Buyers shouldn’t event be looking at homes without a pre-approval. It will only lead to heartbreak in some form or another, whether that be missing the house you love, or falling in love with something you don’t qualify for.
5. Be ready for a bidding war.
In a seller’s market, a bidding war is almost guaranteed. Bidding wars aren’t fun for any buyer when possibility of going over budget is on the line. We recommend looking at homes below your budget in these types of markets so that you have wiggle room in the event that you do get caught in a bidding war.
6. Learn from your mistakes.
Learning that your offer has been declined is not the best feeling, but it’s and opportunity to review your potential slip ups and make sure that they don’t happen again. Learn from your last transaction so you are able to get what you want (a new home) without the drama and frustration of having offer after offer rejected by the seller.