How to Win in a Seller’s Market
Have you been hearing people talk about the real estate climate being a Seller’s Market?
Well, it’s true. A seller’s market happens when there are more buyers than homes for sale. The Louisville area has been experiencing this market for the past two years.
So how do you come out a winner in today’s market and find the home of your dreams while fighting against the other buyers?
Work with a Realtor
Real estate agents constantly research the market for the ideal homes for their clients. Your realtor will likely set up a search for you with your preferred criteria, but they will keep their eye on all the homes in your price range to make sure there isn’t something you’ve missed. Realtors also will hear about properties before you may see them on real estate websites or in the search your agent sets for you. Having a close working relationship with your agent will ease some of your stress.
Prepare for Multiple Offer Situations
Most sellers will have multiple offers on their home so it’s important to make your offer as enticing as possible. When writing an offer keep these items in mind:
Price – Make sure to research the price before putting in an offer. Trying to put in a lower offer than asking can get your offer discarded pretty quickly. When listing a home, most sellers will have a certain profit they desire to make. Buyers should put forth their best offer. Keep in mind that sometimes the best offer may be over asking.
Pre-Approval – Sellers want to consider offers from qualified buyers. Make sure you have a pre-approval letter available from a reputable institution. Your realtor should send that in with your offer. Though a pre-approval letter is not a guarantee of a loan, it shows you have visited with a lender and started the process.
Contingencies – Some buyers out there may ask for an offer to be contingent on the sale of their current home. If you have a home to sell, consider putting it on the market before starting your search. This may mean moving items into storage and renting an apartment for a short time until you find and close on a new home.
Home Warranty – Some real estate contracts will include that the seller purchases a home warranty of the buyer’s choosing. A home warranty is a great idea because it covers the appliances in the home, but it also can be an added expense of $500 or more for the seller. If the seller receives a like offer without having to purchase a home warranty, they will likely take that one. Remember, if it’s important, buyers can purchase a home warranty themselves.
Ultimately you will need to have patience in a seller’s market. Many homes will get listed and go under contract all in the same day. If you see something of interest, get with your realtor and try to get in as soon as possible.