Purchasing a new home is already a huge endeavor, but are you ready for the realities of a seller’s market? As CNBC reports some realtors are calling the current seller’s market “the strongest ever.” The demand for new homes is high, and in some growing cities like Denver, houses that are listed Sunday go under contract as quickly as Friday.
Here are seven of our best tips to make sure you thrive while buying a new home in this seller’s market.
1. Get an experienced agent
A seller’s market is no place for a new or inexperienced agent. Offers need to be made quickly, and aggressively, and it’s important you have someone on your team who understands how the market is working in your area. An experienced agent will guide you in what to expect from the market, will tell you what a realistic offer looks like, and most importantly, will make sure that you get everything you need done on time to secure an offer on the home of your dreams.
2. Get prequalified for a loan
Or better yet, get pre-approved! Houses sell quickly in a seller’s market, and it’s so important that you go in ready to buy. If you’re serious about purchasing a new home, make sure you’re prequalified (or pre-approved!) for any loans you might need.
3. Sell your house first
Another option is to sell your current home first, if you are a homeowner. This allows you to shop with cash, and be viewed as a more favorable buyer to sellers.
4. Ask for “coming soon” listings
Because of the quick turnaround time of the market, homes that you find online might already be under contract by the time you get to see them. Consider asking your agent for listings that will be available in the near future, and be sure to ask for a showing as soon as it’s listed on the market. This can be a great way to get ahead of the game.
5. Make offers quickly
When you do find a home you’re interested in, it’s important to get your offer in quickly (this is where an experienced agent comes in!). Be prepared to know exactly what you want and what you don’t want when you go into a showing, so that you can make decisions quickly and efficiently.
6. Make your best offer, first
An experienced agent can guide you in what a fair offer is for the market, but be prepared to make your best offer first. In a seller’s market, bidding wars are common place, and in popular, growing cities like San Mateo CA, it’s common for houses to sell at over the seller’s asking price. You might not get the first home you make an offer on, or even the second or third.
7. Don’t expect appliances, closing costs, etc.
In a seller’s market, appliances and even closing costs are not guaranteed. Be prepared to have to purchase a refrigerator, oven and other common appliances yourself, as the seller might choose to take these with them. Don’t forget — the market is heavily favoring the seller right now, so be realistic about your expectations.