In a sellers’ market, its best for buyers to be educated about the specific area they would like to purchase. In a sellers’ market, sellers usually like to view as much offers as possible to maximize their profits thus creating a bidding war with buyers, much different from when the market is slow and considered a buyers’ market.
Below are a few tips for buyers:
Ask how many offers seller currently has. If no offers have been submitted, that might indicate property is possibly overpriced or is fairly new on the market. It also lets you negotiate differently and perhaps getting a lower price.
Have your agent do comps in the area and submit with the offer. Sending comps with your offer shows sellers the reason for your offer price on their property. Sometimes sellers set their own price even if their agent provides them comps .
Send a full offer package, not an incomplete one. Since it is a sellers’ market and very competitive, do not send offers without proof of funds or approval letter. The offer will most probably be over looked decreasing your odds. You want to increase your odds of getting the property in a sellers’ market, not reasons why the offer should not be considered.
Do not ask for closing cost. Though many buyers need it or would just like to receive some funds for closing, in a sellers’ market, they will most likely move to an offer that is not requesting closing cost.
Offer as much as you are willing to pay. In a sellers’ market, there is not much time to negotiate on the property much like when it is a buyers’ market. Offering as much as you are willing to pay will increase your chances.
Close as quickly as possible. Some sellers’ are looking to close as quickly as possible due to job transfers or other personal reasons. Some buyers request a closing date 60 days from offer due to various reasons. If your offer looks good enough with a quicker closing, you increase the chances of getting offer accepted.
Communicate with the seller when viewing the property. Buyers should not speak with sellers about price when they go and view the property; the agent does this with the listing agent. A good conversation about the history of the home instead can influence the seller to take your offer. Sellers’ are attached to their homes and sometimes prefer selling their home to buyers who will take care of and love the home.
These are some great starter tip to help buyers in a sellers’ market. There are many more ways to increase odds of purchasing your dream home in a sellers’ market. Buyers should always understand that sellers’ always try to maximize their profits when the market is on their side. With great negotiating skills and some time, you can find the right home at the right price even in a sellers’ market.