Being a buyer in a seller’s market is tough. But these seven tips can put you on the path to success.
There are a variety of opportunities in the Central Pennsylvania real estate market for both buyers and sellers. If you're a prospective buyer click here for a full home search, or if you're considering placing your home on the market, get a free home value report, right here.
If you are considering selling a home now is the time. The seller’s market we saw this spring is expected to continue as we transition into summer.
Currently, inventory is low. This means that homes will spend fewer days on the market and buyers need to act fast. A market like this easily puts sellers in multiple offer situations.
With fewer homes to choose from, especially as they move quickly off the market, your listing may receive many offers. Though this is good news for sellers, buyers shouldn’t despair.
Buyers shouldn’t be discouraged by the amount of competition. It is almost always a good idea to make an offer anyway.
To help you succeed as a buyer in a seller’s market, I have just a few tips.
- Give the sellers more time to move. With homes moving as quickly as they are, situations can become complex as both buyers and sellers often try to sell and buy simultaneously. If you give your seller just a couple extra days to move after closing without expecting compensation, they may consider your offer more strongly.
- Submit a large earnest money deposit. Since your earnest money deposit is part of your down payment, going above and beyond means you are showing the seller that you’re serious about closing. This speaks volumes about your credibility.
- Show the seller you’re qualified. Nearly every multiple offer will be accompanied by a lender. So to set yourself apart, ask your lender to give you a loan pre-approval letter. This type of letter is different and stronger than one indicating just pre-qualification and makes you and your offer more compelling in the seller’s eyes.
If you’re a buyer, don’t be discouraged by the amount of competition.
- Shorten or waive some contingencies. According to federal law, you have 10 days for inspections. However, unless you specifically alter this in your written contract, you have the ability to move the numbers around. Though you should always get a home inspection, sellers will really appreciate it if you tighten the numbers and shorten the process. Another way to tighten things up is by waiving the loan approval contingency—but only if your loan is solid. You may even consider talking to your agent about waiving the appraisal contingency.
- Write a personal letter to the seller. Adding this personal touch will show that you are sincere and highlight your intention to buy their property. Additionally, including a family photo can appeal to sellers who consider more than money when it comes to the offers they’re considering.
- Write your best offer. Don’t try to start your offer off low in hope of getting a counteroffer. Begin with your best, highest offer. Make your offer attractive and above list price if you can afford to do so.
- Write a backup offer. Just like anything in life, things sometimes won’t work perfectly. But, this can be to your advantage if another buyer’s pending offer on the home you want falls through. Be prepared, and don’t be caught off guard
With all of these tips, you should be well prepared to buy in a seller’s market. But we’d like to help. One of our buyer specialists here at Joy Daniels Real Estate Group would like to assist you in reaching your home purchase goal. Whether you’re buying or selling, we are here for you.
