During a buyer’s market is when most experts will recommend you buy real estate. A buyer’s market is when there are more properties for sale than prospective buyers, and sellers are more willing to go with a low bid.
However, that doesn’t mean you can’t buy a new home in a seller’s market, when there are more buyers than homes, and sellers can afford to hold out for higher offers. You just need to make sure you do it right and arm yourself with the right information:
Start Your Search Early
Buying a house in a seller’s market requires diligence, which means you need to start researching even before you attend open houses. Since homes are priced to sell, you need to know what you want, how much you can spend and what things aren’t negotiable. Make the most of your time by obtaining information about the houses you’re interested in. If you’re not sure where to start, talk to the real estate professionals at Heller Coley Reed of Long & Foster who can help you locate different homes that suit both your style and budget. Your agent will look at the disclosures and property reports for the homes that are of interest and guide you through the process of making an offer. The key is providing as much detailed information to your agent as possible prior to getting started.
Demonstrate Credit Worthiness
Take the time to get prequalified before touring homes. The last thing you want is to find your dream home but not be able to secure a mortgage. Being prequalified will help you better narrow your search and exclude any homes that are out of your price range. In a seller’s market, the listing agent will most often expect that a letter of prequalification be presented with any offers. This demonstrates to the seller that you’re serious about buying.
Make a Compelling Offer
After you have found a home you’re interested in, it’s time to put in your offer. Your Heller Coley Reed agent will have done the research to determine what homes in the same area have sold for prior to making an offer. Making as “clean” an offer as possible, one with little or no contingencies, will put you in the best position when your offer is submitted.
Incorporate the Escalation Clause
Escalation clauses state that you’ll pay a certain amount above the highest bid up to your maximum offer. It’s important to know that some sellers may make a counteroffer to your escalation as well. This means they may actually increase the listing price and ask for more money. This is where knowing what prior homes sales have been will prove its merit because while choosing to accept the offer is up to you, it’s wise to think with your head and not your heart.
Buying a home takes more than money; it also takes time, research and financial planning. Since buying a home is probably the biggest purchase you’ll ever make, it’s always better to be work with the knowledgeable and experienced Realtors at Heller Coley Reed of Long & Foster. Call 301.674.2829 or 240.800.5155, or send an email to HellerColeyReed@gmail.com.