How to Buy a Home in a Seller’s Market
Friday Feb 26th, 2021
With the housing market sitting firm in a seller’s market, homeowners that are looking to list are in a great position to sell. But, for first-time buyers, this is a challenging market to navigate. With less inventory, homes are selling quickly and with multiple offers, while bidding wars are driving prices up. With less negotiating power, buyers are also expected to make quick decisions or else they will miss out on their dream home.
Tips for Buying a Home in a Seller’s Market
Sellers have the upper hand in a seller’s market, so it’s important that buyers – especially first-timers – go in prepared. Here are some helpful tips to consider:
Know Your Budget
Getting pre-approved for a mortgage is an important first step in the homebuying process, but it’s just one part of the equation. A home loan isn't the only recurring expense – there are other costs to homeownership, like insurance, maintenance, utilities, and pricey surprises, that you need to account for. By having a clear picture of your budget, including homeownership costs and living expenses, you’ll be able to hone-in on homes in your price range and make quick decisions because you feel confident in how much you can spend.
Work with a Realtor
In a seller’s market, you want to have an experienced real estate sales representative in your corner who has the local knowledge, negotiating skills and resources to support you in the biggest buying decision of your life. A professional realtor will help you get informed about the real estate market in your area, recommend homes within your budget and help you submit a winning offer.
When you find a property that meets your homebuying criteria, you need to take quick and decisive action or another buyer will beat you to the punch. This is where doing your research, being prepared and working with a realtor can give you the confidence you need to achieve your homebuying goals.
Go in Strong
In a seller’s market, you may only get one chance to make a bid, so you need to go in with your strongest offer because there may be no room for negotiations. And it’s not always about money – factors like flexible closing dates and fewer conditions can tip the scales in your favour. By focusing your offer on the seller’s needs, you could position yourself above the competition.
Rejection is a natural part of buying a home in a seller’s market and it’s not uncommon to lose out on multiple homes before having an offer accepted. While it can be very defeating, you can’t take the rejection personally. Instead, you can learn from the experience and apply your knowledge to the next offer you hope to make. This is also a great opportunity to reinvigorate your search by making adjustments to the type of home, neighbourhood or budget range you have been focused on.
Your Friend in Real Estate
Buying a home during a seller’s market is not for everyone, but working with a realtor can give you the confidence you need to forge ahead. To learn more about my real estate expertise and how I can guide you through challenging market conditions, contact me, Deborah Clerk, Real Estate Sales Representative, ASA with Keller Williams Real Estate Associates in Mississauga, Ontario, to learn more.