Whenever there’s a limited supply of houses on the market and a wealth of interested buyers, time is of the essence. I’ll say this again, time is of the essence.
Act fast: If you find your dream home during a seller’s market, ACT FAST. If you take your time on a house you know you want to buy, you may find that it’s no longer available by the time you wish to make an offer. Also, make sure you are preapproved for a loan ahead of time, so your financing is in order when you need it. This may also influence a Seller’s decision in your favor if you are already pre-qualified.
Know you’re at a disadvantage: When it comes to making an offer, keep in mind that you’re the one at a disadvantage. A seller’s market is not the time to try to push contingencies, concessions, specific closing dates or repairs. Focus your attention on what’s most important to you. If there are certain stipulations you want written into the contract, think hard about whether they’re worth losing the property over. If you can make an all-cash offer, you should. Sellers prefer buyers who are willing to pay in cash because they don’t have to worry about the deal falling through due to issues with financing.
Be patient: If you find that you keep losing out on the homes you’re interested in, it’s crucial to be patient and not get discouraged. Many buyers end up suffering during a seller’s market because they get frustrated. Inexperienced buyers caught up in bidding wars will often offer more money than a home is actually worth – or they feel comfortable spending – in order to get the home, they want. That’s always a mistake.