Despite the global health crisis, competition is still tight in today’s real estate market. In fact, a recent report
suggests that the real estate market will experience stiff competition, slashed mortgage rates, elevated prices, and low inventory for the rest of 2021. These market conditions make the perfect seller’s market, where there are more home buyers than homes available for sale. In a seller’s market, there’s a lot more competition for every property, which gives sellers more leeway when it comes to negotiating with buyers.
If you don’t want to lose an excellent property you found on the market or don’t want to be stuck paying unreasonable prices for your dream home, you need to understand how you can compete with other buyers. Below, we’ve listed a few tips that can help you navigate a seller’s market.
Be sure to establish what you want
In a seller’s market, you need to have a game plan in mind so you won’t have to think twice when making huge decisions. For this reason, it’s important to create a checklist of what works for you when it comes to buying a property. Some things that you can put on your checklist are:
In addition, it’s also best that you create a list of potential deal-breakers, so you can quickly narrow down properties during your search. Once you find a home that satisfies your checklist, you won’t have to second guess yourself and move forward with creating an offer.
- how many cars can fit in the garage
- how many beds and baths does the property has
Consult with a Mortgage Professional
You’re going to need a good mortgage lender on your side if you want to have a strong chance of competing with other buyers in a seller’s market. Getting pre-approved for a mortgage can give you a competitive edge when trying to obtain the home of your dreams.
For a smoother home loan process, it’s best to communicate with your Loan Officer on a regular basis. During the process, they will need to collect documents to assess your qualifications. So, having all your financial documents
in order can help speed up the process.
It’s also worth consulting with a mortgage broker as they can help you assess every available lender and mortgage, recommending one that best fits your goals and finances. Aside from making sure that you’re employing a licensed broker, you should also be on the lookout for brokers that have a degree in financial services
. Mortgage brokers with financial services degrees are trained to develop strong business skills and are required to sharpen their knowledge in financial theory. This way, you can be sure that you’re in the right hands.
Move fast and be dynamic
One thing that you will realize in a seller’s market is that nobody will be willing to wait for you. Because of this, you have to act fast if you don’t want to lose a great property. Whether it’s counter-bidding on offers or scheduling showings, you need to be ready for action all the time. There’s no guarantee that the home will be available tomorrow. So, if you’re certain about a particular property, don’t hesitate to jump the gun and make an offer that’s still in line with your financial plan.
By using the advice we’ve listed above, you’ll find it easier to navigate the seller’s market and compete with other buyers without putting yourself through too much stress. For more insights and guides on buying a home, be sure to check our other resources.
Article written by Jennifer Birch for cfimortgage.com