Tips for Buying and Selling in a Seller’s Market

Buying a house is stressful in itself. So when you toss in low inventory and bidding wars, it’s enough to make buyers pull their hair out.

But not everyone feels this pain.

If you’re lucky enough to find yourself on the other end of the coin—meaning you’re selling in a seller’s market—you might welcome the pendulum swing.

Your house will most likely sell fast—yay! And if buyers go head to head in a bidding war, this could drive up your sale price—double yay!

But these situations aren’t the only things to think about in a seller’s market. Here are a few tips when buying (or selling) during this season.

Selling in a seller’s market

• Don’t hike up your price. If you’ve got buyers lining up around the block, it might be tempting to increase your sales price—but don’t. Keep your price competitive. Traffic is your friend, so if your sales price is noticeably higher than the competition, this could affect your number of showings. And less showings mean fewer offers. Therefore, set a sales price that gets the attention of buyers, and then let “them” drive up the price.

• Expect multiple offers. And when your sales price gets the attention of buyers, rest assured that they’ll respond favorably. But while multiple offers is a financial dream come true, don’t make a quick decision. And don’t get excited or fooled by a surprise high offer. The buyer most likely wants something in return.

• Mentally prepare for a fast move. The whole point of listing your house for sale is to move to another home. But if you’re thinking you’ll have plenty of time to find a new home, that might not be the case. A lot of interest means the property might sell sooner than anticipated.

Buying in a seller’s market

• Get pre-approved. Low inventory, too much demand, and eager sellers. This is a dangerous combo for buyers! But while the market isn’t exactly on your side, you can give yourself an edge by getting a mortgage pre-approval before house hunting. A pre-approval is your strongest weapon if you’re caught in a bidding war.

• Don’t lowball your offer. Submitting an offer below asking might work in a buyer’s market—but it isn’t likely to get you far in a seller’s market. So if you really want a house, come with your strongest offer.

• Don’t get greedy. This also isn’t the time to request seller concessions or nitpick minor repairs. So while you should absolutely make your offer contingent on a satisfactory home inspection, you’re not likely to get much more from sellers.

Takeaway

Whether it’s a seller’s market or a buyer’s market, the right loan can make it easier to get the keys to your new home.

Ready to move forward? The loan experts at Real Genius can help. Let’s schedule a call to discuss your home loan needs.

Source:

How to take advantage of a seller’s market:

https://www.thebalance.com/home-selling-sellers-market-1798979

Selling your home in a hot market:

https://www.nolo.com/legal-encyclopedia/selling-home-hot-market.html

5 tips for buying in a seller’s market:

https://www.opendoor.com/w/blog/buying-in-a-sellers-market-tips