When houses are plentiful and buyers are scarce, those in the market for a home have the upper hand. They can drive a hard bargain, demand repairs, and take their time finding the perfect property.
The landscape looks much different when the market favors the seller, and buyers must be savvy to optimize their investment. As was the case in 2007 and again in 2021, houses are sold almost immediately after they’re listed, which poses a number of unique challenges for buyers today. From impromptu front-lawn bidding wars, to rejected offers, to pressure from real estate agents and forgoing home inspections, buyers can find themselves facing significant challenges in the current market.
Here are nine tips to help buyers navigate the tricky waters of a seller’s market and come out on top:
- Secure a pre-approval. Getting pre-approved for a home loan is always important, but it is essential in a seller’s market. When properties are selling quickly, having that pre-approval document in hand could be key to getting your offer accepted.
- Shop below your price range. In a seller’s market, buyers have little to no bargaining power, and that makes price range doubly important. Chances are, you will need to make a full-price offer, so make sure you can easily afford the houses you are touring.
- Be flexible. Buying into a seller’s market means you are unlikely to get everything you want in a home. It pays to be flexible in such an environment, including making a list of must-haves and nice-to-haves.
- Work with an experienced Real Estate agent or organization. Now is not the time for inexperience, so make sure you connect with professionals who understand the local community, the strength of the market, and other factors that will make buying easier.
- Pay cash if you can. Buying a home for cash is not realistic for most buyers, but if you have the capital available, now may be the time to use it. Here is a great list of reasons why you should pay Cash and become an off market buyer. Cash is king in a seller’s market, and having the money available could send your offer to the top of the heap.
- Be prepared with your best offer first. You may not have much negotiating power in a seller’s market, so make your first offer your best offer.
- Consider waiting. Buying into a seller’s market comes with a host of challenges, especially for first-time home buyers. If you can afford to wait, it may be better to hang on for a better opportunity.
- Keep your eyes open. In a seller’s market, for sale signs turn into sold signs quickly, so being the first on the scene can have its advantages. Keeping your eyes open, refreshing sales listings and simply driving around your chosen neighborhoods can help you spot those newly listed homes right away.
- Consider new construction. If existing homes are selling like hotcakes, think about buying a newly constructed property instead. The market for these new homes is likely to be hot as well, but it may not be quite as competitive.
In a market where conventional strategies may not expose you to the best options to suit your needs consider engaging with a platform like Sundae.com, the marketplace pairing cash homebuyers and investors with the ideal properties for their needs. Not everyone knows about this new platform, so you might ahead of the game and maybe able to find a property of your dreams here. However, before you commit to any particular company, make sure that you do your own research and check out Sundae.com Reviews. The market is changing, and many homeowners are moving toward less conventional methods for selling their property.
“The real estate landscape is changing,” said a representative from Sundae.com. “Property owners are seeking off-market methods for selling their homes, and smart buyers are following with cash offers. The conventional ways of transacting real estate are no longer the only way to go as viable, mutually beneficial alternatives bring buyers and sellers together.”
It is nice to have some negotiating power, especially when you are in the market for a new home, but that is not always possible. If you are tired of renting and the housing market is on fire, you may need to adjust your dreams and consider what the perfect home looks like in the current real estate landscape.