Good Counsel for Buyers in a Sellers' Market

 

In a sellers' market, home buyers need to be willing and able to act fast to snag the home they want. This spring, the Northwest is facing a limited number of homes for sale. Realtor.com® offers up a cheat sheet for surviving a seller's market:
 

• Be on call. If you're only looking now and then when it's convenient, you're probably wasting your time. Treat house hunting like job hunting. If your Broker gives you a listing that seems to meet your criteria, follow up promptly to gauge whether it could be a good fit and don't linger.
   

• Bring the paperwork. To be taken seriously, buyers are wise to get a mortgage pre-approval letter as well as a "proof of funds" form from their bank to show they have enough to cover a down payment. You'll be able to act quicker when you do find the right house.
   

• Limit the contingencies. In a sellers' market, buyers may need to forego some contingencies to score the house. Sellers prefer the fewest number of hurdles between them and closing. If you come in with several contingencies -- such as "if" you secure financing or "if" your current home sells -- seller is more inclined to bypass that offer and accept another with fewer possible obstacles. That said, I seldom recommend waiving inspection. Also, don't waste your time lowballing a seller. Make the most aggressive offer above which you won't kick yourself if someone else wins. Hear me clearly; this is not a Broker's way of boosting commissions. It's simply what the current market demands.
   

• Cast a wide net. If faced with limited or high-priced choices, search outside prime locations. Buyers need to carefully consider what they're willing to compromise on. Sometimes properties sit, even in a sellers' market, because of a problem that is scaring other buyers away, such as renovation work that may need to be done. Those "flaws," however, might not be a big deal to you. Finding a house this way can also cut down on the amount of competition you will face.
   

Source: “Surviving a Seller’s Market: The Ultimate Cheat Sheet,” realtor.com® (April 7, 2016)