Tips on Buying a Home in Different Housing Market
Thursday Aug 31st, 2017
With more homes for sale than buyers and potentially lower prices, a buyer’s market could be a great time to buy a new home. Before doing so, however, consider the possibility that home prices could continue to fall, meaning your new purchase might be worth less than you paid for it in no time. Of course, what goes down may eventually come back up. Still, if you wait for prices to drop even further, you might miss out on a great opportunity.
If you’re looking to buy in a difficult seller’s market, there are things you can do to improve your likelihood for success.
Get pre-approved for a mortgage first, so you know how much home you can afford
Put forward a strong offer with a significant deposit amount
Move quickly on a home if you like it (and be aggressive without being annoying)
Make your offer as attractive and uncomplicated as possible (i.e. eliminate as many contingencies as possible, such as a contingency on sale of your existing property, shorten the closing date or come up with a larger down payment)
Be agreeable and responsive
Be flexible with your move-in date
Appeal to the seller with a personal letter
If you should find yourself in a bidding war with another potential buyer, try to not show your hand to them or the seller. Instead, try to figure out the seller’s trigger—such as a specific closing date that would work for them—and include that in your offer. This could potentially give you an advantage over other offers. Also, keep in mind that sellers prefer offers that have no conditions attached.