There is no doubt, we are in a seller’s market right now. Navigating a seller’s market as a buyer is no easy feat so today I am sharing 5 tips when buying a house in a seller’s market to help you outbid the competition.
From people fleeing California in groves to relocating to the area for jobs, the North Texas real estate market is booming creating a SELLER’S market. Buying a house in a seller’s market can be intimidating for many buyers. Prices are soaring and inventory is low. Bidding wars are commonplace causing buyers to pay significantly above asking price and waiving contingencies in order to secure a contract. Here in the North Dallas market, homes aren’t even staying on the market 24 hours before receiving offers in the double digit. Many are offering to buy a home without ever seeing it in person at all! Competition is fierce but don’t let that steer you away from taking the next steps toward home ownership. There are some things you can do as a buyer to position yourself to win.
Do not, and I repeat DO NOT attempt to start viewing homes without having a pre-approval or proof of funds. Being pre-approved not only provides you the leverage of knowing what you can afford when house shopping, it also let’s seller’s know you are a serious buyer. Most seller’s will not even entertain an offer presented without seeing a pre-approval or proof of funds if you are making an all cash offer. It doesn’t take much time at all to work with a lender on a pre-approval.
Negotiations. Enough said. Hire a REALTOR® who knows the in’s and out’s of how to write an offer than will position you to win.
In a seller’s market, they have the power to be very particular about what they are looking for. in this market, majority of homes are not on the market very long and are seeing multiples offers so you need to be prepared to make your offer stand out.
This means, it may not be wise to ask for closing costs to be paid for by the seller. Closing in a time frame favorable to the seller, waiving some contingencies, and beefing up the earnest money are all solid ways of your offer looking favorable to a seller dealing with multiple offers.
If you are unable to offer all cash – as most buyers are not, conventional loans are more attractive to sellers. If multiple offers are on the table, it is not uncommon for seller’s to give preference to buyer’s with conventional financing as the process to closing is often a smoother one.
It is easier said than done not to get attached when you believe you have found your dream home but it so important to try and stay neutral in a seller’s market. Staying detached during the offer and negotiation process will help you maintain a level head and not give up too much trying to win the deal. I have seem buyers offer crazy amounts over asking price, waiving many contingencies and STILL not win the deal. Listen to the advise of your REALTOR® and don’t get too bummed if your first offer is not accepted.
While you may not win the first home you bid on, having a beast of a REALTOR® on your side will lead you to an even better one. Stay patient – your dream home will soon be yours!
Tasha Hinton is an experienced DFW REALTOR® representing buyers, sellers, and investors. If you would like more information about real estate in the DFW metroplex or surrounding, contact her at 314-283-0574 or tasha@bytashahinton.com.
[…] to today’s limit in inventory and the strong demand for properties, these tips can help your buyers standout and know all of their […]