Make no mistake about it, it is a seller’s market out there. On our listings, we are getting double digit offers in 24 hour periods. I have seen more sales over list price than I did in all of 2016. The market is on complete fire. This really makes it difficult for buyers who are trying to maximize their potential. With 11 years of experience, I have not been immune to the seller’s market, myself. Not only have I dealt with numerous buyers who have struggled to find their dream home, I have also been in the market to purchase a home for the past year. It has even been difficult for me. But all is not lost…
I have learned a lot about buyer strategy over the past 11 years. Having a good game plan as a buyer can really make all of the difference in saving time and energy. The last thing you want to do is to start making offers on properties blindly. You will most likely swing and miss and start to get very frustrated. So here are a few tips on how to avoid the painstaking struggles of a seller’s market.
Have an AMAZING Game plan
You will want to know exactly where you stand financially, well before you start making offers. Find out how much you will be pre-approved for with your lender, before you even consider shopping. Working with a reputable lender will help give you a good idea of where you stand financially and how much you will be able to afford.
I always advise shopping for homes 10% lower than what you are preapproved for. This will give you some wiggle room when you approach the seller and you won’t be getting attached to a home that you can’t compete against other buyers for.
Know Your Comps!!
It is always important when making an offer to know your comparable market values. However, it is now more important than ever. You don’t want to get attached to a house that is priced over market value and reward a seller for the current market condition. You can still find houses that are selling at or below market value and you will never want to stray from this strategy. A house is not just a home, it is also an extremely valuable financial asset.
The best way to know your comps is to find a really good agent (Pick me! Pick me!). A good agent will be very comfortable with all of the comps in their market and can instruct you on how to go about finding a house at or below market value. Agents have a lot of tools and experience at their disposal to develop a financial offer strategy.
Appeal to the Seller
The home buying/ selling process can be a little dehumanizing at times. Often, sellers want to detach themselves from their home that they cherish and love by sending it off to the highest bidder. Buyers can often feel neglected because they find a home they love and see their family living in and caring for, yet the seller is far removed from these emotions for financial reasons.
I always advise my motivated buyers to prepare a “cover sheet.” Get personal with it! Let the seller know that you are human and you want to love and care for their home. Share photos of yourself or your family that lets them know who you are.
This may not help you underbid someone by $15,000 and get your dream home, but it might help get a seller interested in working with you on your offer and potentially only having to match other buyers. If you had a good offer strategy going in, you should have some wiggle room to increase that offer.
Don’t get frustrated. Eventually you will find that perfect home for you and your family. Just stick with your game plan and trust your agent. And don’t be afraid to reach out to us if you need any help!!