Tips to Buy a Great Home in a Seller's Market

Tips to Buy a Great Home in a Seller's MarketBuying a home in a seller's market can be challenging. Houses often sell too quickly for buyers to , and prices rise even faster. These tips help buyers know how best to appeal to sellers.

Establish Priorities

Few buyers get everything they could ask for and more in a single property. During a seller's market, buyers may have to compromise a little more on what they want, in order to get what they really need. Buyers should research in advance which aspects of a home they need or want most, such as:

  • location
  • property size
  • square footage
  • amenities
  • proximity to services

If they establish how willing they are to forego certain things in favor of others, they can make it easier for an agent to show them properties that are more likely to meet their expectations.

Act Timely

In the hottest markets, Intracoastal Park homes can be listed for sale and go under contract all in the same day. Even in areas that are a bit cooler, buyers might not have weeks to leisurely browse through properties and take hours to make a decision to move forward. If the inventory of available homes is particularly tight in a desirable neighborhood, sellers will often receive a number of offers before they pick one. Buyers who wait too long to decide to make an offer may lose out on a good deal.

Minimize Contingencies

Since a seller's market usually means that sellers have plenty of offers to choose from, buyers want to ensure that their offers are worthy of consideration. Home buying contingencies on the purchase of a home are common, and include:

  • sale and settlement of the buyer's current home
  • financing for the new home
  • home inspection results
  • home appraisal (usually required by a lender)

In a buyer's market, a person might be able to set other contingencies, such as requiring the seller to make some upgrades. This kind of contingency might not be acceptable in a seller's market. Buyers may not be able to avoid setting any contingencies, but should try to minimize the number and type of contingencies they place in the offer.

Start With a Fair Offer

Bidding on a home can often call for a Goldilocks approach. Essentially, buyers want to make a purchase offer that is neither too high nor too low, but just right. An offer that is too low will probably be rejected out of hand. An offer that is too high might be rejected by the lender after appraisal. Offers at the maximum of a person's buying power also give the buyer little opportunity to negotiate with the seller. Opening with an offer that is priced fairly but also competitive with other potential offers will help buyers to have a fighting chance, without necessarily paying every dime they have.

Understand the Escalation Clause

If a bidding war commences over a property with a very reasonable list price, buyers should be prepared to engage, but also understand their limits. In a purchase offer, buyers can create an escalation clause that allows an agent to increase the offer price incrementally up to a specified limit. This could help buyers to compete in a bidding war without losing over a game of phone tag. In this buying scenario, people should be careful not to set their sights too high. A purchase offer is only practical if the buyer knows they can make good on it.

Starting the home buying process in a seller's market may seem impossible, but it is not. With these tips, buyers can minimize their own stress and show their best to available sellers.

Dylan Snyder is a seasoned real estate professional serving the Jupiter real estate market, Palm Beach real estate market, Palm Beach Gardens real estate market, North Palm Beach real estate market, and the surrouding Palm Beach County area. Along with being a top producer in Jupiter real estate, Dylan's professionalism and expertise in luxury and waterfront real estate sets him and his team of real estate experts apart from the competition. For more information on Jupiter and Palm Beach real estate for sale, contact Dylan at (561) 951-9301.

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