While industry professionals keep warning that the housing market tide will turn, we’re not seeing any evidence of that here in Volusia County. We’re still in the midst of a seller’s market, which makes buying a home feel more complicated.
Industry Tips for Buying a Home in a Seller’s Market
Are you trying to purchase the home of your dreams in the next year or so? Here are some buyer tips and tricks worth knowing if you plan to make an offer in a seller’s market.
1. Find the right buyer’s agent for you
The first step to buying a home in a seller’s market is finding the right real estate agent. While it’s worth running through a basic Realtor criteria checklist verifying current licensure, experience, recent sales comps, and hearing input from recent referrals, it’s also essential you enjoy working with them.
Many of the clients that were once first-time homebuyers have been clients over and over again over the years as they sell and buy homes to upsize, downsize, or as investment properties. Finding a real estate agent you trust now both helps you purchase a home for the best price and forges the beginning of a potential long-term partnership.
Also, in a seller’s market, we recommend seeking a real estate agent or brokerage that is as adept at representing buyers as they are at selling homes. Many of the sellers we work with want to sell their homes fast and with a minimum number of lookie-lous traipsing through the house regularly. In-house networking between our agents means we may be able to find the just-right home for you while simultaneously helping another client sell it – a win-win for both parties.
2. Have all of your pre-offer documents finalized
Things move fast in a seller’s market. Sellers get impatient and aren’t as inclined to review all the offers as they are when the market is reversed.
The time it takes you to get all of your pre-offer documents together – like loan-preapproval letters or proof of liquid assets for a cash offer – could mean missing out on a great deal. For example, many buyers confuse the difference between prequalifying for a loan and preapproval for the loan.
The former is provided via the information you share with a lender or mortgage broker without proof. Loan preapproval is more in-depth and requires proof of wages, financial accounts, tax records, etc., making it more official. If a seller receives two of the same matching “high” offers, they’re going to go with the offer that is the most financially viable, reducing their risk of a canceled sale.
Your real estate agent will help you put together all of the official pre-offer documentation required so you can make immediate offers when you find a house you like.
3. Learn how to look through the “ick”
Most people love the idea of a turnkey home. However, in a seller’s market, buyers are wise to see the diamonds in the rough. While we don’t necessarily recommend waiving a home inspection to land the house of your dreams (unless you are DIY-savvy or have licensed contractors in your close family/friend circle), many of the cosmetic flaws that turn buyers away can be used to your advantage.
Cosmetic flaws, such as flooring, paint, countertops, etc., can all be replaced for a reasonable price – and over time – once the home is yours. Even the willingness to replace the roof after the sale may be worth your while and worth a little extra than others are offering if it means gaining extra yard space or proximity to the best schools.
Being willing to hold a big-picture view about making the home your own over time places more homes within your reach.
4. Beware the contingency trap
Buyer contingencies are best kept to a minimum – or left out altogether – in a seller’s market. Contingencies are usually part of a buyer’s market culture when sellers have to sacrifice more to get a reasonable price and close escrow within a shorter window of time.
In a seller’s market, you’ll make offers alongside people who are willing to waive all kinds of things to get the home they want. The more complicated you make the offer, the less likely it is to be accepted.
Set Yourself Up for Home Buying Success
Are you ready to purchase a home in our seller’s market? Schedule a sales consultation with Southern Exclusive Realty to set yourself up for home-buying success. We have a team of real estate professionals with decades of experience and hundreds of successful sales on record.
