The available housing inventory throughout Orange County is still at an all time low. Because of this, homes are selling quickly, with multiple offers and over asking. The seller’s market appears to still be strong.
When a market changes into a sellers market, if you are buying a home, you need to change the strategy with how you are approaching the market to purchase the home of your dreams. You will no longer have the upper hand. Because of this, you need to make some concessions.
While you won’t necessarily have the luxury of being tough when you negotiate the price you are willing to pay, and you will have to move much faster in order to get the offer in on your “dream home”, it doesn’t have to be a chaotic process. Here are a few key strategies to consider when putting offers in on homes in a Seller’s Market:
Make A Good First Impression
In a situation where multiple offers are coming in for a listing, making a good first impression with the sellers and the Realtor® that represents them could be the critical factor in determining whether your offer gets accepted or somebody else’s does.
One great exercise we regularly ask our buyer clients to do is write a letter to the seller. Introduce them to your family, let them know all the great things you love about their home and illustrate to them how you see your family living in and enjoying being a family in their home. This will make you much more than simply “an offer”. It makes you human.
Look At Homes Within Your Reach
Unless your Realtor® is completely ignoring your needs, in a sellers market, you will have gotten prequalified for your loan, BEFORE you even look at one home. That said though, it is important that you pay attention to that pre-qualification. Take into account that homes are most likely going to go for full list price, and/or over list price. This means that you need to look for a home that’s price range is a bit more conservative. This will give you room to offer full price, make a counterbid over list price, and afford the extras, such as closing costs.
Not paying attention to these fine details will definitely delay your process and only cause you frustration.
Be Ready To Go At Any Time
Remember- The market is going to be moving very fast. If you see a listing you truly love, don’t delay. Jump on it and get your offer in. Once your offer is accepted, you’ll have a little extra breathing room, but still keep in mind that getting your offer accepted is only half the battle. You still need to be receptive, making sure you get things like inspections done on time, and realistic, not over analyzing things and not giving the seller trouble over things that in the grand scheme of the deal are minor items.
Buying a home in a sellers market is a little more stressful than a buyers market. A professional Realtor® though can help you through this process and make sure you are happy with the home you found, and that it is exactly what you wanted.
