Hot Hot Hot: Tips to Buy a Home in a Seller’s Market
We all know it – the real estate market is totally in favor of seller’s right now. And it’s a crazy, busy time!
But if you’re a buyer, what are you supposed to do to stand out and close the deal on the home of your dreams?
Buying a home in a seller’s market might present its challenges, but it doesn’t mean buying a home that you love is impossible.
Check out our suggestions below:
Do Your Research
Gather the data and research you need to better understand what houses are currently available for sale through real estate listings. When you find homes you’re interested in, take a moment to drive out and visit the neighborhood to get a better idea on the home’s surroundings and if you enjoy the local area.
This step will allow you get a better idea of what you’re looking for without feeling pressure to put in an offer. And you’ll also be able to have better conversations with your real estate agent on the make or breaks.
Get an Agent
Speaking of real estate agents – it would greatly help your transaction if you hired one. Agents have tools and resources not available to the public to find listings before they hit websites like Zillow.
Agents will also be able to guide you through the real estate process. Our recent Guide on Hiring a Real Estate Agent can give you more info!
Receive the Loan Approval
Make sure you’ve done the work of comparing mortgage interest rates from different lenders. After you find a mortgage loan that works for you, work with your lender to receive preapproval.
Preapprovals shows sellers that you’re serious – which can help set you apart from other buyers.
Offer a Rent-Back Agreement
If you’re trying to really stand out from the crowd (and aren’t in a rush to move), you can instruct your agent to let the seller’s know you’d be interested in a rent-back agreement. This gives the sellers more wiggle room in their timeline of moving out, and would give you quite the edge. Rent-back agreements are just that: agreements. If it comes to this, make sure to work with your agent and come up with a plan that suits you.
You might be reading that plenty of buyers are waiving the home inspection to help the sellers like them more – and yes, while the sellers theoretically would like that, it isn’t necessarily good for you. If the home inspection comes back with some pretty bad reports, you want to be able to back out.
BUT, you can set a standard home inspection instead. If the inspector finds only minor issues with the home, the seller knows you’ll move forward with the deal without asking for repairs.
2021 (so far) has been pretty tough for buyers. With a lack of inventory and prices reaching record highs, your patience will be put to the test. But it doesn’t mean you can’t find the best deal for you.
Focus on what you can control, and stay within your financial limits.
Check out Alliance Title’s Blog for more real estate homeowner/buyer/seller guides.