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How to Buy Smart in a Seller’s Market

11705392445_86c98890bc_bIf you’ve tried to buy a home recently, you know that prices are almost up to an all-time high and multiple offers, bidding wars and cash offers are the norm in today’s neogtiations. When this is the case, it’s easy to panic and lose sight of your goals and budget in an effort to secure your next home. But it’s essential to buy smart during a seller’s market and here are 6 ways to do just that:

If you have cash, offer cash. If you don’t have cash, get pre-approved with a credible lender. Pre-approval means that the lender verifies how much home you can afford because you have already submitted all of your paperwork. Taking this step secures you as a serious buyer and allows you to close faster than the casual looker.

Stick to your budget. When you’re not finding homes in your price range (or they’re going quickly), it can be easy to start inching up into a price territory you never intended to visit. If you’re encountering bidding wars, it’s crucial to only look at properties under your budget so that you have room to increase your offer if you need to.

Expand your options. You may need to be flexible with your original plans and “must haves.” This may include looking in areas of town you might not have first looked, looking at different types of housing that you have not originally considered, or being willing to flex on the condition and/or amenities of the home.

Be flexible with the sellers. You may gain an advantage with the sellers by offering things money can’t buy. For example, offering a quick or an extended close date (based on what they would prefer) or a renting back option could gain you the edge that you need. And don’t be afraid to ask the sellers what could seal the deal for you!

Don’t panic. When you allow emotion to take over, you may find yourself increasing your budget and making offers on homes that don’t fit your needs. Be sure to stick with your plan and eventually, with a good agent leading the way, you’ll be in the home you always wanted.

And speaking of agents, make sure you have a great one! Your agent should be your biggest advocate and should be skilled in negotiations and proactive in looking for your home. The agent should also be creative in searching for homes and leveraging his or her network to find homes that haven’t yet hit the market.

If you’re looking to buy in this seller’s market, let us know how we can help!

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Our agents write often to give you the latest insights on owning a home or property in the local area.