Being Prepared to Buy in a Seller’s Market
Do you have a vision in your head that you are going to look at dozens of fabulous homes and end up with the sellers reducing their price and covering closing costs just to sell you a home? In your mind the whole experience seems positive, simple, and exciting. Well, this is not always the case, especially in a seller’s market; and if it is a seller’s market there are a few things you are probably not going to love about the home buying process.
- Fewer Turnkey Properties – In a buyer’s market sellers often spring for that kitchen or bathroom remodel, new windows, etc. to give them a competitive edge. In a seller’s market this isn’t necessary. This means you have less of a chance of finding a newly upgraded home that you are not going to have to put some work into.
- Searching for Available Listings is Frustrating – “Is this all there is?” is a phrase you may find yourself saying more than once. The selection may be slimmer than you expected.
- Getting Pre-approved is a Necessity – Getting pre-qualified alone is not going to cut it in a seller’s market. Homes are snatched up just as fast as they are listed. If a seller has to choose between multiple buyers, they are going to pick the pre-approved buyer because they are a sure thing.
- Tighten Up the Budget – There is a good chance you will end up with a mortgage payment that is more than you are expecting because listing prices are higher. As a result, you may need to make some serious adjustments to your monthly spending.
- Flexibility is Demanded – Since there are fewer listings available, you may need to be flexible in terms of neighborhood and features. You might also need to skip the many contingencies you want to ask for or there is a good chance you will lose to a buyer asking for less.
- Overuse Your Imagination – You will find many sellers won’t even clean or remove personal items, such as photos and trophies. This makes it hard to imagine living there. Many sellers don’t even leave during a viewing, which can be awkward.
- Longer Sale Process – The only way you are probably going to enjoy a fast sale is if you have cash. Otherwise, you may end up in a bidding war, and the seller may demand to live in the home for longer than you would like while they look for a new home to buy.
If you have a house to sell then a “seller’s market” is the only two words you want to hear. However, if you need to buy a home, you could be in for a long adventure that may take you on quite the roller-coaster ride.