Purchasing a home in a seller’s market doesn’t have to be challenging. Some preparation and a strategy may give you an advantage over other potential buyers and increase your chances of having your offer accepted by a seller.
Get lender preapproval or prequalification.Determine your loan options and obtain a pre-approval letter from a lender prior to beginning the home search. Some homes are going under contract within days, if not hours, so being able to move quickly with financing is often a plus. The letter gives you an idea of how much home you can afford – so you can easily eliminate homes not in your price range – and lets sellers know you have been vetted financially. Remember, being pre-approved does not guarantee a mortgage – be prepared to shop around with different lenders or work with a mortgage broker.
Be available to close as quickly as the seller requires.A seller wanting to close within 30 days may not be interested in an offer from a buyer who also has a home to sell prior to closing on a new one.
Offer more earnest money/due diligence.Earnest money goes towards a down payment/Due diligence is paid to seller as the house is taken off the market while you do your due diligence, typically 1% to 5% of a purchase price, earnest money is held in escrow until a sale closes/due diligence given to seller. By offering more earnest money-due diligence money, you’re letting the seller know that you’re a committed buyer.
Make your best offer.In a seller’s market, you probably won’t be able to present an offer that’s below the asking price. If you love the property, present the seller with your highest and best offer.
Include an escalation clause.If you want your offer to compete with multiple offers, consider having your real estate agent include an escalation clause. The clause details how much you’re willing to pay over competing offers. Including an escalation clause in your offer is another way to show a seller that you’re a serious buyer.
Still unsure how to navigate the housing market as a buyer? Call us today!
Marie. Dena and Nathan
Author:Dena Parry Phone: 803-287-9105 Dated: June 28th 2018 Views: 253 About Dena: Dena is a native of Lancaster, SC, just south of Charlotte. After graduating from the University of...