How to buy a house in a seller’s market

What is a seller’s market and what does that mean for a home buyer? You may have heard the news that now may be a great time to sell a house. In a seller’s market the housing inventory is low. This means less competition for homeowners to sell their home and more opportunities for multiple offers to be received. Homes are often sold quicker and at a higher price.

A seller’s market tends to create competition amongst buyers. When there is a lot of competition for home buying, it is important to have a plan in place to help you get the house you want the first time.

Have a plan. Figure out exactly how much home you need.  When looking at homes for the first time, a huge house with plenty of space for the family may appear a must on your list. Keep in mind however that larger homes may come with higher utility bills and may also cost more to maintain. Scaling back on size to a more affordable home that still offers enough space for the family may be the route to go.

Get pre-approved. Pre-approval has several advantages. It saves you time in knowing how much house you can afford. Why look at homes out of your price range? That can just lead to disappointment. A pre-approval lets the seller know that you are serious about buying a home and that you are a ready and able home buyer. This can make your offer stronger than someone who does not have a pre-approval.

Make your best offer first.  Both the buyer and the seller want to make the best deal possible. The seller wants to sell for the highest price possible and the buyer wants to buy the house at the lowest price possible. Right now, sellers are seeing the biggest profits since 2007. In a seller’s market if you start with a low offer you may lose the house you want to another buyer who is willing to come in at a higher price. So be sure to consider all aspects prior to making your offer to buy the house.

When buying a house in a seller’s market make your best offer first and be prepared to negotiate if necessary.
When buying a house in a seller’s market make your best offer first and be prepared to negotiate if necessary.

Don’t over-analyze. Don’t feel pressure to write an offer on a home right away simply because it is a seller’s market. However, don’t over-analyze the price of the home and possibly risk losing a home that has most of your must-haves, and that you have already started to fall in love with. That’s the beauty of a pre-approval, you will already know if the home is in your price range.

Work with an experienced Realtor®.  An experienced Realtor® knows the area, is familiar with negotiating pricing and wants to save you time and money.  Find an experienced Realtor®  to work with. You are competing against other buyers, you need a professional who knows the process and can negotiate with ease.

Be prepared to negotiate.  Your initial offer may not be accepted, however it does not necessarily mean that you’re out of the running. You may need to counter offer once or even several times to come to terms with the seller on the price. For this reason you may not want to search for homes at the top of your price range. Leave yourself some room in case you need it for negotiating the pricing.

Don’t lose hope. Most of all don’t lose hope. You may not get the first house you made an offer to buy.  You may not even get the second house.  Each time you make an offer you are learning strategies for the next one. There may be a few homes that slip through your fingers, but if you keep looking, you could find your dream home at a price you can afford.

In March, Realtor Magazine released these cities as the best places to sell a home. As a buyer, be sure to have your plan in place whether you are looking in these cities or others.

1. Denver, CO 6. Aurora, Co
2. Fort Collins, CO 7. McKinney, TX
3. Grand Prairie, TX 8. Plano, TX
4. Irving, TX 9. Dallas, TX
5. Colorado Springs, CO 10. Portland, OR

If you are planning on buying a home, get pre-approved first. Talk to the lending experts at Lenox/WesLend Financial, call 844-225-3669. As heard on the radio, it’s the biggest no-brainer in the history of mankind. 

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