If you want to buy a house in our seller’s market, there are five steps you need to take.
Before you embark on any of these steps, though, you should first hire an experienced agent to guide you through the whole process. As the saying goes, people like to do business with other people they know, like, and trust, and working with an agent or team with a respectable name can improve your offer in the eyes of listing agents.
Now, onto our five steps.
First, don’t make your best offer first, but be ready to make your best offer after that. You don’t want to make a super-low offer, but you need to have a clear understanding of the home’s value so you can make an offer that’s a little below it and leave some money on the table to work with going forward.
Next, don’t overanalyze the home’s asking price—just look at it critically and determine whether the home is priced properly or is overpriced. If it’s priced properly at its true market value, be willing to pay that number.
Third, you need to be pre-qualified or, even better, pre-approved. The further along you are in the pre-approval process you are, the better. There are certain types of loan programs that allow you to submit all of your paperwork to the point where all you have to do is find the house you want and have it appraised. If you can close in as little as 20 to 25 days, that might be the edge you need to win a bidding war.
Fourth, be ready for multiple offers situations, especially if you’re shopping under the $300,000 price range. In a multiple offer situation, it’s critical to understand a home’s value, because you don’t want to bid so high for a property you like only for it to not appraise.
Lastly, learn from your mistakes. If you lose out on a couple of properties, talk to your agent and figure out what might’ve gone wrong. It might be possible that you didn’t bid enough or use the right terms in your offer. Sometimes the terms of your offer are just as important as what price you’re offering. If you need fewer days to close or you have a shorter inspection period, for example, sellers may favor yours in comparison to others.
If you’d like to talk more about how to buy a home in our seller’s market or you have any other real estate questions for me, don’t hesitate to give me a call or shoot me an email. I’d be happy to help you.