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Health & Fitness

Home Buying Tips in a Seller's Market

Anyone who has tried to buy a home lately knows that it can be very challenging. Historically low mortgage rates have brought home buyers out in force. At the same time, there is a limited inventory of homes for sale. Home buyers are competing with each other for the relatively few listings on the market, leading to multiple offers in many cases and sale prices climbing above the asking price. Trying to buy a home in a seller’s market can be frustrating and you may not be able to land the first home you want to buy. Still, there are ways to increase your chances of success. Here are some tips that may turn the odds in your favor:

Work With an Experienced, Knowledgeable Realtor® In a hot seller’s market, the selling process tends to move much faster than normal. As a buyer, you often have to move quickly as well, while still making prudent decisions about the home purchase. An experienced, knowledgeable real estate professional will know the neighborhood, the pluses and minuses of the home, what the sellers are looking for in an offer and how to improve your chances to come out on top in a competitive market.

Get Pre-Approved for a Loan
When you’re searching for a home, one of the first things you need to do is get pre-approved by a strong lender. This is different from pre-qualifying, as it is a full loan approval instead of simply an opinion letter. It is best that you take this step before looking at homes so you can go into your home search knowing what you can afford. Being pre-approved may also put you in a better negotiating position, as the seller knows the buyer is ready, willing and able to buy, and the financing is not in question. Those buyers who are not pre-approved have less chance of obtaining an accepted offer on the house they wish to buy.

Be Prepared to Act Quickly When You Find the Right Home Time is of the essence in this market. Winning buyers often act fast while those who wait may lose out. So after finding a home you like in your price range, don’t wait too long before making an offer. The longer you wait, the greater the chances are that other potential buyers will visit the home and decide they want to make an offer, too. And the more competition, the tougher your chances of coming out on top. So if you find the right home, make your move!

Make a Strong, Competitive Bid
In a seller’s market, homeowners may receive several offers, so make sure yours is strong by working with your agent to decide what a fair price for the home is and how to craft the best offer. If your initial offer is too low, you may be out of the running before you even get started.

Don’t Give Up! Trying to buy a home these days isn’t easy. In a seller’s market, the chances are that some of your initial offers will be rejected and you can’t take it personally. It’s just part of the process. Don’t give up! While it can be frustrating, the search won’t last forever.

Questions/Comments? Feel free to leave a comment below or contact me at katie.williams@cbnorcal.com



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