If you’re looking to buy a house, you’ve probably noticed that there are many homes for sale in Herald, CA. You’ve probably also noticed that we’re currently in what is often described as a seller’s market. A seller’s market occurs when there’s a high demand for homes, leading to sky-high prices, quick sales, and a difficult market for buyers to negotiate. Even if you’ve saved up to afford the downpayment and have a great credit score, you can still easily find yourself struggling to buy a home that works with your budget, potential mortgage, and your lifestyle. Many people will find themselves settling for a less desirable home than they’d like just to ensure that they get the security and financial stability of owning a home. All hope is not lost, however. Here are three tips that will help you negotiate buying a home on a seller’s market.
1. Find a Great Real Estate Agent
Real estate agents aren’t just an invaluable resource for selling your home. Finding the right real estate agent to buy from can be the difference between securing your dream home and failing to find a property or settling on a less desirable house. Because real estate agents are familiar with the market in a particular area, they can help you find properties you may have overlooked and assist in navigating a seller’s market. The key to finding the right agent for buying a property is to focus on buyer’s agents. These agents will be working for you, not for the sellers, and they will be able to show you properties listed by a variety of listing agents. They will also have already established relationships with listing agents in the area, which will help you get an edge if you’re competing against a variety of other buyers.
2. Know Whether Your Offer is Competitive
In a seller’s market, many homes will be sold above asking price. If you can afford to do so, this is a great way to give yourself an edge, but even if you aren’t able to make a ridiculous offer you can still find ways to give yourself an edge. Waiving certain contingencies can help – it will give the buyer more security if they know that you aren’t going to pull out of your agreement at the last moment – but you should only do this if you’re certain that you’ll be able to sell your current home and secure a mortgage. Your earnest money deposit, or the amount of money you submit with your offer, is another factor that can help you stand out from the crowd, since a large earnest money deposit indicates to the buyer that you’re serious about the offer and financially secure enough to put your money where your mouth is. You can also offer to give the seller a few more days to move after closing, though be sure not to delay for more than a week after closing.
3. Act Quickly and Decisively
Many people will try to “time the market” – that is, to delay their offer until the housing market dips and they’re able to get away with a lower offer. But if you find a home that you greatly desire, trying to time the market will be more likely to lose you an opportunity to offer at all. Since the market is generally on an upward trend, you should also be actively looking if you want to buy a property – in a few years, you could easily be priced out of the market and forced to look for homes in less convenient or desirable areas. If you see a home that’s within your budget and that you’re interested in, act quickly and decisively to go for a showing and make your offer if you like the property.
Interesting Related Article: “What Should Real Estate Agents Know About the Millennial Market?“