24 Feb 5 Tips for Buying in a Seller’s Market
A low inventory of houses and a high demand for home buyers is known as a “Seller’s Market.” RE/MAX predicted in their Outlook Report that 2021 would be a Seller’s Market, and so far, they have been right. How are you supposed to buy a home in a Seller’s Market? We have outlined five tips just for you:
It is essential to have an awareness of your local real estate market, from your city to your neighbourhood. What’s happening in one city or town may not be the same for Kingston and the surrounding area. On a smaller scale, real estate also changes from neighbourhood to neighbourhood. Meeting with a professional Realtor will increase your knowledge of the local market and help you uncover the ideal course of action to achieve success in a highly competitive marketplace.
You have decided to buy a home, how exciting! Now down to the details- what’s your budget? One of your first steps should be to meet with a mortgage professional to see what a lender would be willing to provide you and at what terms. They will also provide you with details relating to the down payment required, potential closing costs (e.g., land transfer tax, legal fees, and adjustments), and other costs (e.g., moving expenses, home inspection) that encompass your budget. In a highly competitive market, this step cannot be overlooked.
In a seller’s market, homes sell fast, and they won’t wait for you. You’ll need to be decisive and act quickly when you find the property you want. Therefore, it’s crucial to have the financing pre-approval in place, associated professionals at the ready (home inspectors, lawyers, etc.), and making sure you have set the time aside to view homes quickly.
Strengthen your offer
In this type of market, you only get one chance. To make the best offer, you need to know the seller’s situation- the highest money value isn’t always the best offer. Other essential factors are the number of conditions and the length of a closing date. Sometimes a good story of why you may be the perfect fit for the home helps too. Check out one of our previous posts we created for just this here: “FOUR EASY TIPS TO MAKE YOUR OFFER MORE COMPETITIVE.”
Work with a Pro
Working with a professional Realtor will guide you through the best way to buy a home. A few advantages include working with you to give you impartial advice, negotiating on your behalf, and handling all the paperwork. Keep in mind a professional and experienced Realtor has done this many times before and has the data to keep you informed. How do you find the best Realtor for you? Ask friends and family about their experiences with their agents. Research online, look at their website and see what past clients have said by reading through reviews on multiple platforms (e.g., Google and Facebook).
Buying a home in a Seller’s Market is certainly not easy and can be an overly emotional journey. Know that we are here to help you. Reach out to us today!