Buying a Home in a Seller’s Market
A tight seller’s market can be a challenge to navigate. There is still a good chance you’ll find the home you’ve been looking for, but there is also a great chance you’ll have to beat other homebuyers keen to place an offer on the property as well. So, how do you exactly buy a home in a seller’s market? Here are 7 ways that will help you beat your competition and win the heart of the seller.
- Make sure your finances are in order.One of the first orders of business in buying a home to get your finances in tip-top shape. You may need to improve your credit rating, pay off debts, and get pre-approved for a mortgage. This is why it’s important you deal with this months before you actually look for a home, as some processes can take a considerable amount of time.
- Don’t dilly-dally.Once you find the home you’re dead set on, don’t hesitate to write an offer. This can also mean going to see the new homes as soon as they’re listed on the market. If it meets your criteria and fits your financial capacity, place an offer. In a tight seller’s market, you’re not the only one rushing to snatch a property. Remember the old proverb: the early bird gets the worm.
- Don’t rely on listing photos.Although pictures paint a thousand words, they don’t always convey the story. Oftentimes there are great listings that are misrepresented by bad listing photos. This can also go vice versa: heavily touched-up photos may be hiding a property that has seen better days. Don’t hesitate to go check out a property in person to get a real feel of the place.
- Be realistic about contingencies.In the world of highly competitive markets, sellers are less likely to shoulder necessary repairs. If expensive defects are found, there is an off chance they might lower the price. Before you fully commit to a home, have an inspection performed by a professional. Its main purpose is not to pressure the seller to address these issues, but to identify problems that might cause you major stress in the future. Another option is to waive or shorten contingencies altogether to make your offer more appealing.
- Place your highest and best offer.Since competition is fierce in a tight seller’s market, put your best foot forward and start with the best offer you can come up with. This may be your only chance to make an offer, so make it count. If you’re keen on negotiating, however, wait until after inspection, if there were any costly defects found.
- Write a personal letter.Sometimes, a personal appeal can go a long way. Pen a letter addressed to the seller. Attaching a photo of your family might also help. Although it doesn’t tug the heartstrings of all sellers, it’s still a nice gesture that can prove to be beneficial. Remember: some sellers do want their homes to go to a family who will take care of it.
- Make a substantial earnest money deposit.Another way to convey to your seller just how serious you are about the property is to make a big earnest money deposit.
Silicon Valley is one of the best places to live, work, and play. For more information about the current real estate opportunities in the area, get in touch with us today at 650-489-6251.