Be prepared and act quickly.
No homebuyer wants to be caught off guard buying in a seller’s market. A hot seller’s market can make it difficult, if not almost impossible, to buy the first home you want to buy. Do your homework! Jaideep Puri, also known as JD, will advise you and position you so that your largest financial decision sets you up to derive the best possible return in the future. When buying, one must always prospectively look ahead as you never know when you may want to or need to sell the home you are about to purchase today!
Because homebuyers generally have very little interest in the real estate market when they are not buying a home, they don’t always know how the market changes from one season to another, much less from month to month. It’s one of the reasons that the most important thing you can do is trust your Vancouver area real estate agent JD Puri to advise you on market conditions.
Markets can change almost overnight. When the market changes to a seller’s market, your homebuying strategy needs to change with it. Here are tips that can help.
Preparing an Offer in a Seller’s Market
When you’re buying a house in a hot market, time is of the essence. Multiple offers happen with more regularity in a seller’s market than a buyer’s market because a seller’s market is defined by low inventory and a surplus of homebuyers. A beautiful home that is priced well can attract more than one offer.
In a seller’s market, you should be ready to compete against several other offers.
Here are a few things to consider as you prepare your offer when buying in a seller’s market:
· Price: The exact dollar figure isn’t always the most important factor, but don’t pen a lowball offer! You may need to offer more than the amount the seller is asking.
· Deposit: Your deposit is the amount of money you submit with your offer. A larger deposit might look attractive to a seller weighing multiple offers. Ask JD Puri for advice on what to do in this case. He will know how to forge a strong relationship with the listing agent and make sure your offer is presented in the best light possible.
· Don’t request favors: This is not the time to ask the seller to give you the refrigerator or washer and dryer, part with fixtures, or paint the front door.
· Delay buyer possession: If it’s customary for the seller to move at closing, consider giving them a few extra days to move. The seller may look more kindly upon an offer that lets them move at their leisure.
· Submit your preapproval letter and proof of funds documentation. If you are getting a gift letter from a relative, include that as long as your relative is OK with you sharing that information. Family members can act as a bank in some cases. Have you been nice to your grandmother lately? 😊
Ask Your Agent to Call the Listing Agent for Tips
Listing agents are often very busy. If your agent can save the listing agent some time by preparing the offer correctly, the listing agent might be more inclined to recommend your offer over an offer from another agent who did not complete the offer the way the seller expects.
Think of it this way. Say a listing agent has two offers. One is exactly the offer the seller wants. The other offer is not, and it would need a counteroffer from the seller to compensate. With the second offer, should the listing agent prepare a counteroffer, or should the buyer’s agent revise the offer?
In this situation, it’s better for the buyer’s agent to revise the offer. During the time it would take the listing agent to prepare a counter, send the counteroffer for a signature, and then deliver it to the buyer’s agent, another full-price offer could arrive. If you want to be the first offer, the best offer, and the only offer the seller will accept, your bid needs to match the seller’s expectations.
Your buyer’s agent can find out what the seller wants by calling the listing agent or by reading the verbiage and instructions in the multiple listings service (MLS), which often has more information than what’s available to you in the public buyer’s listing.
Know what the seller is looking for from the start and you’ll increase your chances of hitting the mark with your offer.
Jump on Seller’s Market Showings
Don’t be the buyer who waits until the weekend to view a home in a seller’s market. Especially now as there seems to be less homes waiting until after the weekend to review all the offers. As recently as a month ago almost all listings were waiting until after the weekend to take multiple offers. This has dropped considerably. Try to see the house as soon as possible. Sellers usually don’t enjoy having buyers come through their homes at all hours of the day, and most would like to see their home sold quickly.
The Bottom Line
If you write a good, fast, and clean offer, your chances of acceptance are far better than those of a buyer who hasn’t done their homework.
Find an experienced agent capable of handling the assignment, who can guide you through the ins and outs of your local market, follow their advice, pen a strong offer, and you’ll be in good shape, even in a seller’s market.
As your go to REALTOR® in Vancouver and the Lower Mainland, Jaideep (JD) Puri is here to help you. He has the resources and staff to take you from intern investor to an expert savant in no time!
For more resources or to learn more about JD and his background, visit WWW.JDPuri.Com – there are a lot of resources such as these blog posts that can be found there as well.