I’ve been a Realtor since 2005 and have been through various waves of Real Estate but never have I experienced the market we currently find ourselves in. I have seen both Buyers markets and Sellers markets and even seasons of balance between the two. What I haven’t seen is a Sellers market quite like the one we are in.
Let me start by going through the key elements that make up either a Buyers market, Sellers market, or a Balanced market.
Buyers Market
A Buyers market is one with the following elements
- A lot of active inventory to choose from
- Listings tend to stay on the market longer
- Flexibility on price due to the above points
- Average interest rates
Sellers Market
- Shortage of Inventory
- Influx of Buyers
- Low – Average interest rates
- Price Increases
- Multiple Offers
Balanced Market
- Good Supply of Inventory
- Good Balance of Buyers & Sellers
- Average interest rates
- Negotiating room
- Average of 30 days on market give or take
So now that we’ve got a better understanding of the different types of Real Estate Markets; let’s chat about the current market – Sellers Market. I’m going to give you some tips on how to set yourself up for success and help you be as competitive as possible!
Set Yourself up for Success
In an intense Sellers market, you are almost always going to be competing with other Buyers for the same house. Because of this, planning in advance and being prepared is key! You need to be ready to go when a house hits the market.
Here are some proven methods to set yourself up for success as a Buyer in a Sellers market
Financing | This is a MUST. You need to have your financing ready to go prior to making an offer. Talk to your lender about options and have all of your paperwork ready to go. When competing in multiple offers you need to come in strong with both terms and conditions. The shorter the timeframe you can offer for final approvals, the better.
**You may want to have the conversation with your lender about the ability to offer without a financing clause. This is risky and something I can’t speak to or recommend. Only you and your lender can make that call.
Deposit | The bigger the better. So many factors come into play when it comes to multiple offers. If a Seller is looking at multiple contracts and the prices are similar, a strong deposit could be that one thing that sways them to accept your offer.
**Your deposit ultimately becomes part of your purchase price so if you can acquire a large portion of this in advance, it can really help
Personal Note | A proven method that I highly recommend. Get personal, share your family, tell the Sellers a bit about you and your story.
**Many Sellers have an emotional attachment to their home. Ultimately, money talks but once again if there are very close offers and one Buyer has given some personal touches to their offer, it can really help!
Inspections | Choose your Inspectors in advance. Send them an email, let them know that you’re in the market and will be calling. Once you find a house and are waiting to present your offer, give them a call and pre-book the inspection. Being able to tell a Seller that you’ve already booked your inspection shows them your motivation and that you’re serious.
**Another option is to have the home pre-inspected which would allow you to offer without a subject to inspection. This would be dependent on the time frame from viewing > offer presentation day and off course the availability of the inspector and willingness of the Seller to accommodate this.
Paperwork | Know the paperwork you will be signing and become familiar with it in advance. Your Realtor can give you blank copies to review in advance so you are comfortable and confident when it comes time to sign those very important papers!
Be in the Know | In an intense Sellers market, things are changing quickly and it’s so important to understand the climate of real estate in order to be fully prepared when it’s time to offer. Ask your Realtor questions, and know what other homes are selling for, how long they lasted on the market etc.
Utilize Technology | A lot of Buyers are shopping from afar and this can add some extra challenges when trying to find a home in a Sellers market. There is often not enough time to physically view a property prior to making an offer. In addition, many out of town Buyers have a set time for their house hunting trip and if you end up bidding on multiple properties, you may not be able to settle on an home during your visit.
This is where modern technology has become an absolute game changer in the business of Real Estate. Because of products such as Zoom and Face time, I have been able to assist Buyer in an entire purchase before they even step foot in their home. I can virtually walk a Buyer through a home and give them every detail they would have seen if they were physically present. Then, we can chat over zoom and come up with a game plan. From there, every bit of paperwork can be done via e-sign. Modern technology has truly changed the game of Real Estate!
Being a Buyer in a Sellers market can be really stressful and disappointing at times. You are very likely going to have to take a few swings before you get that accepted offer.
All you can do is put your very best foot forward and by following these proven tips, you can be assured that you have tried your best!
Please let me know if you have any questions at all! I would be more than happy to give you any advice I can when it comes to being a Buyer in a Sellers market. (or any market at that!)
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