When it comes to buying a house, one of the first things that you need to find out from a realtor is what type of market you are buying in. Is it a buyer's market or a seller's market? Obviously, you want it to be a buyer's market because it will be more favorable for you. However, if it is a seller's market, it doesn't mean that a purchase is impossible, but it can make things a bit more difficult. After all, in a seller's market, there is a lot more competition and fewer homes on the market. Here are a few tips to help you navigate a seller's market and hopefully come out on top:
1. Be Willing To Put Up A Larger Deposit (Earnest Money).
When a seller is receiving multiple offers, it is going to look great when you can put up earnest money. However, what is going to look even better is if you can double or possibly even triple the standard earnest money deposit amount. Think about it this way: this is money that you are going to be paying when you close on the house anyway, so why not go ahead and pay it now to show the seller that you are serious about the house. It shows the seller that you aren't going to be a buyer that backs out at the last minute and that you are committed to the offer that you have placed on the house.
2. Submit a Pre-approval Letter for a Loan.
More often than not when you submit an offer on a home, you should include a pre-approval letter from a lender or some form of documentation that shows you can get financing to purchase the home. In doing so, you are showing the seller that you are a solid buyer and that you have already sought out financing and have been approved. Keep in mind that it is ideal that this letter has the same date as your official offer for the home.
3. Allow the Sellers Plenty of Time to Move Out.
There is a good chance that the sellers are looking for another place to purchase, since they are selling the home that they currently live in. Many are unable to make a purchase until they actual receive the cash for the home that they are selling. This makes things very difficult and time sensitive. So, rather than expecting them to be out the day after closing, give them a few extra days to get all of their personal belongings out of the house, and make sure that they know that you will do this for them. In fact, you can even put it in writing, if you'd like. This consideration can speak volumes in your favor.
For more advice on buying in a seller's market, work with an experienced real estate agent at an agency like Chris Calhoon Real Estate who is familiar with the area where you would like to purchase a home.
Once you sign the sale contract with your listing agent, there's a good chance that things will start moving quickly. Your agent will want you to stage your home for the listing photos, open houses, and showings. If you've never experienced the staging process, you may not know exactly what to do or where to start. The information on this site will help you to not only understand what's expected of staging but also offer tips for you to maximize your efforts without investing a lot of time. I hope the information here makes your home sale process a little bit less confusing and a little easier to manage.