5 Tips for Buying in a Seller’s Market
As you are probably aware, in most price points in Northeast Florida, we are in a “Seller’s Market”. Basically, that means sellers have the advantage in many negotiations right now. The low inventory has created a situation where there are more buyers than sellers. Though we may see a change at some point, a seller’s market is where we find ourselves for now. We will give you some tips for positioning yourself well as a buyer despite the market not making things easy.
- Come to the negotiating table armed with a pre-qualification or proof of funds document.
Before we put in an offer to buy, you will want to get pre-approved for a loan. **Some large bank lenders will try to only give you a verbal “pre-qualification” based on a few questions they ask over the phone or in an online survey. You want an underwritten pre-approval which requires you to provide the lender with some documentation.
- Have the paperwork ready.
We will attach an approval letter or proof of funds document to the offer to show that you are serious, organized, and actually able to buy. Because there are often multiple interested buyers for a given home, the sellers and their agents may not consider an offer that does not come with the accompanying paperwork. We will remind you and be sure everything needed is submitted with the offer.
- Be flexible and open to compromise.
It may not be possible to get exactly what you want, where you want, at the price you want. That is just the current situation. Remain open to possibilities you might not otherwise want. Generally, your max price is limited by income or desired payments but things like style, size, age, and location are up to you. You might end up in a better home for a lower price by expanding the search area slightly.
- Be ready to pounce.
Things are moving quickly. Well priced homes do not last very long in most price ranges. Be ready to visit and make an offer if you see something you think you may like. If the house checks all or most of your “wants and needs” boxes, don’t think about it too long. We are seeing multiple offers on good homes within the first few days on the market.
- Don’t play hard-ball.
In a seller’s market it is important to be flexible, the fewer conditions on the sale the better. Conditions on an offer might include the sale of your house, a longer or shorter than typical closing time, moving-in early, etc. Even a full-price offer may be turned down if there are too many restrictions placed on the sale. It is less likely in the current market to get everything the way you want it. Hard negotiating still works at the flea market or in a Craigslist transaction, but asking for too much is a great way to get nothing. There is no guarantee that the seller will counter your offer, they might just move on to the next one. There are multiple opportunities for negotiation, the offer price and closing date may not be the most appropriate time to try to get a win. Consult your Realtor® and follow the seller’s lead.
Good deals are still out there to be had, there just are not a ton of home run deals available right now. If you follow these tips you can still get a great home at a good price, even in a seller’s market. If you have any questions about what determines a buyer’s vs seller’s market, feel free to reach out we would love to discuss it with you.
