Buying a Home in a Seller's Market

If you've been searching for a new home in recent months, you're well aware that competition is fierce!! There are lots of buyers all trying to purchase the same home, resulting in multiple offers and leaving more than a few buyers very disappointed and losing out to better offers!! This is definitely a good news/bad news scenario. If you're the one looking to sell your home, the odds are in your favor that it will sell quickly and possibly for even more than you have it listed for! As great as that sounds, the downside is Mr. and Mrs. Buyer who are unable to purchase the home they really like because the listing either sold before they were even aware that it was available or the offer they put in wasn't accepted because there was a better offer.

If you're wanting to sell your home, this multiple offer situation could make one a bit greedy! There may be multiple offers but that's not a given. You really need to listen to your listing agent on what the best price to list your home is. They can give you solid advice backed up by what the market is doing and what homes are selling for in your area. The other issue with listing your home too high is that, once there is a buyer, the home has to appraise for the offered amount. If it doesn't, the home owner will have to come down to the appraised price so that the buyer can get the loan or the buyer will need to come up with the difference, something that they may not be able or willing to do. 

Back to buying in this market! What can you, as a buyer, do to give you a better chance? Before you even start house shopping, you should always get a pre-approval letter from your lender. This is true in this market as well as any other market. You should always do this first! If you don't necessarily have a lender that you would like to use, you could call your real estate professional and ask who they usually work with. You should meet with them and then also get another quote. If you have one pre-approval letter though, that's good enough to start looking. You can always continue to check other lenders while you house hunt. If you haven't already contacted your real estate professional, now is the time to do so. You can definitely look for homes on your own by attending open houses or looking online but if you have an agent working for you, you can receive emails of homes as soon as they hit the market, not several days after, giving you a huge advantage! We can get you set up through our MLS system and once your perimeters are put in, the emails are sent automatically just as soon as the listing is in the MLS. You can look at the property and decide if you would like to look at it but if not, you can reject it.  When you decide to put in an offer on a property, you need to consider how long it's been on the market. If it was just listed, your offer will need to be pretty close to the list price but again, your agent will be able to do take a look at what properties have been selling for in the area, so have an amount you'd like to offer in mind and then get your agent's opinion on that amount. If the house has been listed for a while, then they may be more willing to come down and accept a lower offer.

The problem with this market, or one of them, is that because there just aren't the supply of available homes out there, people are less inclined to list their home and get it on the market before they find the home they'd like to purchase. The next problem is that means the offer you'd like to make now needs to be contingent on your home that's not even listed. If there happens to be multiple offers, the sellers probably won't be very inclined to look at any offer that's contingent on the selling of your home. Because of  this, it's still best to get your home on the market and when it comes to the buyer taking possession of your home, your agent can state that it's dependent upon you finding suitable housing.

I hope this has been of some help and has possibly answered a few of your questions. Please call me if I can offer any assistance to you!

Nicole

Nicole Allread

Nicole Allread

Realtor/Associate Broker
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