These days, it’s a seller’s market in the mortgage world. That implies that more buyers are looking to buy homes than there are homes for sale, giving way to some heavy competition. As there is higher demand, assets can go off the market more quickly, and they may sell for more than the asking price. And how are you going to beat the competition out there? The next time you find yourself in a seller’s market, take these ideas into consideration.
In a seller’s market, homes will go off the market lightning fast, so be ready to act quickly. A few months before you are ready to purchase, study houses in your chosen neighborhood to get a feel for the market. This will help you decide what the normal range of prices is and how easy homes are sold. If you are ready to buy and have found a home, try to arrange a tour before the open house weekend, if possible. This will give you the advantage to put in an offer over other buyers before they even see the home.
You should always be as prepared as possible when purchasing in a competitive market. Start by getting pre-approved first. Having pre-approved indicates that you are genuine and able to buy from the seller. Having the finances in order shows that you have the means to buy the house and for financial reasons, will not need to back out of the deal. Your letter of pre-approval will explain how much you can pay and what kind of mortgage is right for you.
Make a solid bid.
By removing a negotiating period or bidding war, bringing your best offer to the table can save time. A seller does not want to deal with the troubles of negotiation, so it may have a better chance of being accepted immediately if you make a solid bid. Also by taking you out of a bidding war, bringing your best offer will save you time and possibly money. The seller will be deterred by making an offer that is far lower than the asking price and they will take the offer right off the table. You would know the best deal to make if you’ve done your due diligence.
Together with your offer letter, writing an additional letter to the seller can help you stand out against other buyers. Write a formal letter to the seller describing how you imagine your family at home if you intend on making the house your home forever. Perhaps you can see yourself cooking breakfast in the kitchen every morning for your family, or explain how you can see your children playing in the backyard on sunny days. You can have an advantage over your rivals by adding a personal touch to your bid.
Right now it’s a tough market out there, but you will be loving your new house in no time with the right attitude and game plan!