What You Need to Know When Buying in a Seller’s Market
If you have been told that it is a seller’s market, you need to fully understand what this means. You might have a picture in your mind of how the experience will be, but you will likely find that it ends up being nothing like you are expecting. Below are New Life Homes’ tips for understanding what it means to buy a new home in a seller’s market.
- Inventory is Slim – In a seller’s market there are far more buyers than there are sellers; that should tell you the inventory is scarce. You probably won’t be in a situation where you have five great homes to choose from, which could actually be a blessing in disguise.
- Flexibility is a Must – Not only will the selection be slim but you may also need to be flexible when it comes to your “wants” and “needs.” You may have your heart set on a three-bedroom, turn-key property with appliances, but you might need to settle for a two-bedroom fixer-upper with a den that can be converted to a bedroom.
- Research Becomes More Important – Buyers are often taken advantage of in a seller’s market because sellers know they can get away with it. It is up to you to stay on top of the market, major changes in the area, and comps.
- Sacrifices for a Higher Budget – You have taken the time to determine how much you can afford. The problem is that all of the homes you are finding are over your budget. You may need to reevaluate your spending to afford something more expensive.
- Bidding Wars Are Exhausting – A bidding war may sound exciting – and it is for the seller – but it is not that much fun day for a buyer. You will find bidding war situations a lot more often in a seller’s market.
- Don’t Expect Many Contingencies – In a buyer’s market, you can often get away with a long list of contingencies because sellers are so eager to move their home that they are happy to meet these demands. This is not the case in a seller’s market.
- Sellers Don’t Even Try – Homes tend to be a lot messier in a seller’s market. Staging isn’t necessarily needed, but it would be nice if the sellers at least cleaned and put away family photos and toys so you could get a better feel for the home.
When sellers have the advantage the buying process may be little different than expected. Keep these above points in mind to put yourself – and your frame of mind – in the best position for buying a new home in a seller’s market.