As a buyer, you need to understand the ins and outs of a seller’s market. During spring time, property demand is relatively high and sellers are clamoring for multiple offers. For the buyer to emerge as the victor, there are certain things they should know.
What is a Seller’s Market?
A seller’s market is a type of demand where more and more people are looking for top quality houses, but the inventory is low. This causes a fierce competition that you cannot face without a realtor and a high budget. Following are five things that you should know about the seller’s market that will help you close a deal faster:
1. It’s a “First Come, First Serve” Situation, So Be Prepared
You finally found the house of your dreams, but you need a few days to get your papers into order. If this is the case, you can forget the deal because as soon as you are out the door, there will be dozen others approaching the seller after you. This is why, it is better to get a pre-mortgage approval, so you are standing ahead of the rest. A pre-approval letter will show the seller that you are a serious buyer and he will keep you under consideration.
2. Hiring a Smart Realtor is the Right Choice
With a real estate agent by your side, you have a better chance of getting the house you want. A smart realtor has up-to-date knowledge about the real estate market. He will be able to guide you in what house to look at and where. Not only do they help in finding you the right house through the right channel, they also make sure that you are getting a good deal. Their negotiation skills allow you to buy a house well within your budget.
3. Seller’s like More Cash Upfront
If your credit rating does not have a good track record, it’s possible that the seller might be a bit reluctant in seeing you as a serious buyer. You can rectify this by putting forth a higher down payment. The stronger you appear financially, the higher will be the chances of you getting the house than your competition.
4. Time is of the Essence –Don’t Finalse the Deal before the Due Diligence Period
In the real estate market, time is of essence but what most buyers forget is that after they have given the earnest money, they still have a due diligence period to back out of the deal. During this time, take stock of the property and find out what kind of repairs it would require. If you find the property lacking as to what the seller had initially described, you can back out of the deal. Your earnest money will be paid back in full, within this time period.
5. Sellers Like to Be Courted a Little
Everyone likes to be appreciated every once in a while. So, why not try this strategy on the seller. Write a personal letter complimenting the seller’s efforts on keeping the home so well maintained. By building an emotional connection with the seller, you will be able to convince the seller that you are truly in love with the property. Your enthusiasm and compliments might just be the thing that sells you to the seller.
A seller’s market is extremely competitive and to land the house of your dreams, you need a smart realtor by your side. Let Steve Bhalla help you thorough this process and negotiate a great deal on your behalf. Visit SteveBhallaTeam.com if you are looking to buy a property with help from expert real estate agents in the market.