Consider the following house-hunting scenario: You've just entered the front door of a stunning home that has recently been advertised for sale in Nanaimo. It's the right size, in the right location, and it's within your budget. There's only one problem: it's crammed with other would-be buyers! They all appear to look forward to bidding for the property, and before the day ends, multiple offers confirm this fact.
That's how it often looks in a seller's market. In a seller's market, there are fewer homes than buyers. So, is it impossible to buy in a seller's market? Not by any means!
Tips and tricks for finding a home in a seller's market
If you are looking to compete favorably in a seller's market, you must refine your home-buying instruments. The following tricks and tips can come in handy.
While there are various strategies you can employ to secure a home in today's frenetic market, most experts agree on one thing: acquire a mortgage preapproval before you start looking for a home.
A preapproval letter informs the sellers that a lender has checked your financial status and creditworthiness and that you are ready to buy.
Know what you are looking for exactly
In a seller's market, time is the one thing you can't afford to waste. Homes sell quickly, and you must be ready to respond swiftly. To do so, you'll need a thorough understanding of the specifications you're searching for, such as the location, number of bathrooms/bedrooms, amenities, garage, school zones, and so on.
When suitable houses come on the market, and you know what you want, you'll be able to recognize them and organize a tour instantly - or, in certain situations, even submit a bid without seeing them. In a hot home market, this is sometimes can come in handy.
Choose the best real estate agent.
Every savvy buyer's secret weapon is an experienced real estate agent. They're excellent negotiators, have a thorough knowledge of the neighborhood you plan to move into and have a wealth of connections that you need to maneuver the seller's market.
When shopping for an agent, check out their reviews, contact their former clients, and gauge their reliability with questions such as:
- How well-versed are you in the area where I'm interested?
- How can you strengthen/distinguish my offer in a crowded market?
- What kind of access do you have to homes that aren't on the market yet?
- What is the most challenging deal you've ever completed?
Make a no-strings-attached offer.
In a seller's market, your lack of bargaining power affects more than just pricing. When competing against numerous other buyers in such a market, your bids must be less conditional to be attractive. After all, why would a home seller choose a deal that is contingent on various factors when there are several unconditional offers available?
You might need to consider whether attaching conditions to your offer, such as requests for renovations to the house, is a good idea.
Moreover, insisting on contingency clauses, for example, your buying is conditional on the sale of your current property, may also be a wrong decision. On the contrary, there might be the need for you to be willing to meet the seller's requirements, for instance, avoiding rigidities with the move-in date.
Finally, you may need to practice some patience! There's a good chance you'll face some fierce competition out there. Above all, keep your focus on your goal and practice patience. There is a house for you out there. With the above-discussed pointers in hand, you'll soon find a suitable roof over your head!