Buying A Home In A Seller's Market: 4 Tips For Success
Posted on: 13 October 2021Share
It's no secret that trying to buy a home in a seller's market can be stressful. In fact, if you've already had offers rejected left and right, you may be starting to feel like your dream of owning a home is slipping away. Fortunately, there are a few strategies you can try to make your offers more appealing to sellers, thus increasing your chances of getting one accepted even in a seller's market.
1. Start With an Experienced Real Estate Agent
It all begins with choosing a real estate agent who not only understands the current market but also the area where you're looking to buy as well. They will be able to help you find single-family homes for sale as soon as (and sometimes even before) they hit the market. Meanwhile, a knowledgeable agent will be able to advise you on how to make a competitive offer based on local comps and other factors.
2. Ditch the Contingencies
The fewer contingencies you put on your offer, the more appealing it will be to sellers. For example, if you were planning on putting in an offer that is contingent on you selling your current home first, you may need to reconsider. Likewise, if the seller has already had an inspection done on the property and has provided a copy of the report, you might also want to waive your inspection contingency.
3. Consider Adding an Escalation Clause
One strategy that many prospective home buyers aren't aware of is the ability to add an escalation clause to an offer. An escalation clause essentially means that you will increase the amount of your offer by X dollars if you are outbid, up until you hit the maximum amount you are comfortable with paying for the house. This can be a great way to stay competitive, even if there is a bidding war on the home you want.
4. Offer to Pay Closing Costs or Other Fees
In addition to offering to pay above the asking price, you could also consider offering to pay your seller's share of the closing costs. If that seems a little too steep, even offering to pay a set dollar amount (such as an additional $1,000) towards closing fees could set your offer apart from others. With these strategies in mind, you'll be able to submit the most competitive offer possible and increase your chances of getting one accepted.
Contact a local real estate agent to get help finding a single-family home.