The Secret To Buying A House In A Sellers Market
If you’re a homebuyer, sometimes buying a house isn’t as easy when it’s a Sellers Market. You’re basically competing against a bunch of buyers for a home because there aren’t a lot of available houses out there.
Before you wait for a buyers market or go with gusto, find out if it makes sense to buy at that moment. Start out by considering the following to help you decide:
- Interest Rates
- Available Housing Options
Shall we begin?…
Factors When Buying A House In A Sellers Market
Buying a house in a sellers market could be overwhelming. However, there are a few things that can influence whether it’s smart to buy or wait.
1. Interest Rates
One of the biggest components to buying a house in a sellers market are the mortgage rates. If mortgage rates are too high, then it might not make sense but if rates are low at the time, it could be advantageous to purchase a home.
2. Available Housing Options
A Sellers Market environment basically is when there aren’t a lot of houses available, but there is a high demand; a.k.a a bunch of people looking to buy. So if a buyer has specific house wants or needs, he/she may get frustrated because there are slim pickings.
Since there are a bunch of buyers looking for a house but not enough houses to choose from, there is definitely going to be competition. It’s almost a guarantee that the home buyer will be in a multiple offer situation.
To look more attractive to the seller, you could:
- Be Pre-Approved
- Be Approved For Conventional & Non-Conventional Financing
- Include Less Or Waive Contingencies
- Structure A More Appealing Offer To The Seller
- Put More Into The Down Payment
- Don’t Low Ball (Present A Strong Offer)
Since a Sellers Market is one where there are multiple offers on a house, be prepared to possibly pay full price or even over the asking price. If you are trying to negotiate for a deal, it may not be an apt time to purchase a house.
The Prep To Buy A House In A Sellers Market
If you’ve already evaluated the 4 factors above and the outcome is advantageous, the next step is getting ready to buy the house you found.
Here are some pointers:
- Get Pre-Approved
- Shop Around For Houses
- Pick A Top Buyers Agent
- Select Only Necessary Contingencies
- Be Flexible
Once you’ve really honed in on the above factors and taken the necessary steps in order to buy a house, it’ll be smooth sailing (even in rougher waters).
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