What is a seller's market? When there are more buyers than homes on the market, it's a good sign that it's a seller's market. It's a great situation for sellers to be in leading to quick sales and over asking price offers.
So what about the buyers during this madness? You’re forced to act fast and bid high. This can be a hard pill to swallow if you’ve just entered the market, and likely, it will take losing out on a few properties to really grasp what you’re up against.
Make sure to have all of your ducks in a row so when the right property comes on you’re able to jump on it! Send your agent your preapproval, and it’s a good idea to have a few preapprovals with varying amounts depending on the house you find.
You’ll need to get comfortable with making a quick decision on one of the largest purchases you’ve ever made. Many buyers struggle with the idea of paying over the asking price for a house, but in many cases if you don’t get onboard, you’ll miss the boat! It is definitely not uncommon to see houses selling over 10% higher than list price!
Improve your odds.
You want to stand out among the crowd of offers, so what can you do? Waiving any or all contingencies makes for a very strong offer. The expression “cash is king” certainly rings true in real estate. Your offer will go straight to the top of the pile. Of course, it isn’t realistic for most people to pay cash for a property, so you could also opt to waive your home inspection.
If you’re uncomfortable waiving the contingencies, you should ensure your financing terms are competitive. Putting down a sizable down payment shows the seller that you are likely to have smooth financing.
Lastly, a personal letter can sometimes do the trick in a multiple offer situation. Depending on the seller, it’s possible your story will pull on some heartstrings and give your offer the push it needs!
Keep your options open.
If you are feeling defeated from this competitive market, consider widening your home search. You’re likely to find the market ease up a bit and so do the prices! If location isn’t flexible, search for homes that have been sitting on the market, even a little higher than your budget. You’re likely to find a motivated seller and won’t have to worry about bidding wars.
We know these times are tough for buyers, especially in the Greater Boston area. If we can help you in any way, give us a call at 617-974-9275.