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How to Buy a Home When It's a Seller's Market
Due to a combination of low inventory and other factors, many experts are saying that this season’s housing market will be very competitive for buyers—and will put sellers in the driver’s seat.
Those predictions, however, shouldn’t deter you from buying. With a little savvy and a lot of preparation, you can get into the home of your dreams. Here are a few tips to help you buy in the current market:
Get pre-approved for your mortgage. If you get a pre-approval, the seller will see that you’re ready to buy and that you have the backing of a lender. Without a pre-approval, a seller may be concerned that financing will fall through. This step is important in situations with multiple contract offers, as a buyer with a pre-approval could have an edge.
Be patient, but be ready to pounce. It’s possible that it may take some time for you to find the home that’s right for you. Or, alternately, your offer may not be accepted in a multiple bid situation. Either way, it’s important to have patience with the current market conditions. However, when you find a home you want, you’ll need to act fast and make sure your offer is strong.
Set a limit and stick to it. Whether it’s the price of a home or how much you can afford in a mortgage, it’s a good idea to set a limit for yourself. Try not to get caught up in the frenzy of the market and overextend yourself in a bidding war. Multiple bids on a home can quickly drive a price up, so make sure you know when to walk away.
Have a backup plan—or two. Unfortunately, you may not get the first, second or even third home you make an offer on. Have a backup plan in terms of tempering what you need in a home and keep your options open. If your first offer on a home isn’t accepted by the seller—but you’re still in the running to get the home—have a plan in place for a solid second offer.
Be smart and don’t let the market dictate your actions. Remind yourself that the home you’re going to buy is the home you’re going to be in—through all market conditions. For example, don’t bid on a home that may have serious repair issues or waive the home inspection. You should be realistic and level-headed about your purchase.
Work with an experienced real estate agent. An experienced agent will know all the tips and tricks for buying in a seller’s market including finding out what’s important to the seller and which contingencies are needed. They’ll understand the market and know what it takes to get a buyer into their dream home. As a buyer, having experience on your side is critical in a seller’s market.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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