Ideally, you want to buy in a buyer’s market. This is when supply is greater than the demand, which allows you to comfortably sail through the process of making low offers on your dream home. But that ideal scenario isn’t the reality in many places right now. Instead, you will be homebuying in a seller’s market.
As a result, the real estate market is booming, driven in part by the pandemic and in part by near-historic low-interest rates. First-time homebuyers looking to enter the market, and seasoned homeowners aiming to carve out more space, are lining up to make offers. Unfortunately, greater demand means higher prices and more competition. However, for the eager would-be homebuyer it also frequently includes fraying nerves.
Remember to breathe. Although it’s a seller’s market right now, you can still find your dream home. With some added patience, a few tactical maneuvers up your sleeve, and the help of real estate and legal professionals, you can chart a course for homeownership, even if the waters are choppy.
Do you want to take advantage of the current low interest rates? Here are two tips you need to know when home buying in a seller’s market.
The Right Way To Approach Home Buying In A Seller’s Market
1 • Hire the right professionals for your corner.
If you want a fighting chance in this seller’s market, employ this trifecta of professionals: a realtor, a real estate lawyer, and a mortgage broker.
Your realtor is your guide through the process. They hunt homes in your price range that match your criteria. They advise on the amount to offer but also when to step up and when to back down. Often, they also have intimate knowledge of the local market and can steer you toward neighborhoods you might not consider on your own.
If a realtor is your guide, then a quality real estate lawyer is your protector. They ensure a timely and correct filing of your documents so that you don’t lose out on an opportunity. They perform title searches to inform you of any liens or legal ownership issues. What’s more, they act as a liaison between you, the seller, and your realtor. If you want to save money as you dive into a seller’s market, consider an online real estate lawyer like Axess Law that offers professional legal services for affordable prices.
Finally, you need a mortgage (or specialist). A mortgage broker searches for the lowest interest rates across lenders, while a specialist tends to work with a single lender. In either case, they are crucial figures in your homebuying journey.
2. • Start your homebuying process by bidding low.
With a good team in your corner, let’s now discuss bidding tactics. For example, if you have a set budget of $500,000, it is tempting to look at properties in that range. But if there’s one thing a seller’s market is known for, it’s the grueling bidding wars. That 500k asking price can quickly become 550k, 580k, and upwards as buyers clamber over one another to seal the deal.
If you want to avoid getting shut out and losing precious time in a market that keeps going up, you must first submit a low bid and go up from there. Look for homes in the 450k range instead, which gives you leeway in any ensuing bidding war. By starting low and landing in your comfort range, you also save yourself from “over-extending”. This is important to avoid because that dream home can easily turn into a financial nightmare if you don’t stick to your budget when home buying in a seller’s market.
That’s it: just two solitary tips for home buying in a seller’s market. Of course, the first tip is actually three tips rolled into one as follows:
1. Find a great realtor.
2. Hire a fantastic online real estate lawyer.
3. Track down a tireless mortgage advisor.
Following is the second tip which is to start your bidding low. Now, follow these two pieces of advice, and navigate your way to a happy, habitable investment. If you have any questions or suggestions, we always love to hear from you in the comments below. Also below are links to more informative articles about ALL things DESIGN for your home or business.
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