Tips For Buying In a Seller’s Market
The last year has seen a real estate market filled with frenzied home buying. Properties were listed and often sold in a day, sometimes in just a few hours. Many homes were sold even before they were listed. Buyers received multiple offers and many homes sold for thousands more than their listing prices. It was a heady time for home sellers - and often a time of frustration for buyers who found themselves losing out time and again when competing to buy a home.
Although the pressures of this sellers market are lessening as more inventory becomes available, we still expect 2021 to continue to be a seller’s market. Since that’s the case, home buyers will still face many of the challenges they faced in last year’s hectic market. If you’re planning on buying a home, there are some steps you can take to increase your chances for success.
First, get pre-qualified for your home purchase. When a lending institution pre-qualifies you for a loan, you’ll know how much home you can afford and sellers will know that you have the financing already in place to buy their property. Nothing frustrates a seller more than to accept an offer from a buyer only to have it fall through because the buyer can’t get financing for the purchase.
Second, once you have your financing in place and begin your search, be prepared to act quickly. In a seller’s market, you can’t take several days to make up your mind about whether to make an offer on a property. When homes on the market are snapped up in a day - or even a few hours - you have to make a decision quickly and submit your offer as soon as possible. And you have to make it as attractive as possible to the seller so they will be induced to choose your offer over the many others they receive. And don’t be surprised if you end up offering more than the original list price.
Finally, in a market where properties move so quickly, you need to work with a realtor who can help you find the home that’s right for you, who knows the various Lakeshore communities, who has the experience and the connections to work ‘outside the box’, and who is proactive and can show you properties before they hit the open marketplace. A realtor who has many contacts with sellers can save you time, money, and frustration, and make your buying experience a positive one even in these challenging times.
We have 15 years of experience working in the West Michigan real estate markets. If you’d like more information or a free consultation, please call us today.