5 Things Buyers Should do in a Seller’s Market
Have you heard of a seller’s market? A seller’s market is a marketplace in which there are fewer houses for sale than there are interested buyers, giving the seller the advantage in negotiation. Typically, in a seller’s market, properties will be purchased for higher than listing price due to the demand. Often, there are multiple bids on the table. What does this mean for you as a buyer?
- Seller’s market means buyers should be ready to negotiate heavily and more than likely offer more than listing price. The simple principle of supply and demand is in session here- the more in demand the supply is with not enough to go around, the higher the price goes. Keep in mind house appraisals still matter, however your agent will more than likely recommend increasing your offer or adding better terms.
- Buyers should act quick with an offer and not lowball. In an extremely competitive market, a buyer will need to make sure they act with urgency. It’s important that you as a buyer communicate with your agent quickly and effectively to ensure that you do not miss out on the home of your dreams. If you offer lower than listing, the seller may not even respond to you to counter as this could be seen as disrespectful; all situations can vary of course. Be prepared: you might be entering a bidding war!
- Buyers should already be working with a lender and be pre-approved. One of the most important pieces a buyer needs regardless of the market is a pre-approval letter. The more a buyer is prepared, the more seriously a seller will take you and the smoother the process will go. If you do not have a lender, ask your agent for a referral. We work with one of the BEST in San Diego!
- Buyers need to remember not to give up even if there’s a better offer. In a seller’s market, it is highly unlikely that you will be the first to give an offer. It’s vital to speak with your agent about the best strategy in giving the best offer, promptly. It is good news when the seller counters- that means you are still in the game!
- Buyers need to enjoy the win. If you are successful in purchasing your dream home in a seller’s market, then congratulations!
Have more questions about the best way forward? We are happy to help whether you are a buyer or a seller.