The real estate market has continued to stay competitive throughout 2022. Inventory has remained low. What does this mean if you are trying to buy a home? If you’re buying in a seller’s market, you must act fast and make your offer extremely competitive. This is the only way that you can stand out from the crowd and get your offer accepted.
If you are a homeowner trying to sell a house fast, the ball is in your court. The current real estate market is a seller’s market, which means buyers will have a tougher time reaching their goals. But selling your Louisville home right now? It’s awesome!
As a buyer, it can feel like an uphill battle attempting to buy a home in this market. Fortunately, there are smart tactics you can implement to help you reach your real estate goals.
Here are three impactful tips that will help people who are buying in a seller’s market.
1. Act Fast
Time is of the essence. If you don’t act fast when trying to buy a house in this market, you will lose out. It’s important to have all of your ducks in a row before officially starting the process. That will enable you to act quickly when trying to buy your next home.
For example, make sure that you have your financing in order. Get preapproved if you’re paying with a mortgage, or organize your cash if you are paying that way instead.
Next, make sure that you have alerts set up from your real estate agent that will notify you when a new listing hits the market. You can have these notify you directly to your email and check it from your cell phone.
Once you have your alerts set up, make sure that you can act quickly once a listing hits the market. Be prepared to visit a home with your agent so that you can offer on it once you confirm that it’s a good fit. Properties don’t sit on the market very long. Speed is key to helping you buy your next home in 2022.
2. Put More Money Down
“Cash is king”. In real estate, cash carries a ton of weight and credibility. If a homeowner that is selling their home sees an offer with a larger down payment, they are more likely to choose that offer. The more cash that is put down in an offer to buy a house, the more confident a seller feels about it.
This is partially because the buyer doesn’t have to leverage the bank as much. They have strong purchasing power themselves through the cash that they are bringing to the table. The bank is also more likely to approve the loan if the buyer brings more cash to the table.
Additionally, the loan approval relies on the appraisal of the home. The bank only feels comfortable lending on a certain percentage of what the house is actually worth. If an appraisal shows that the property is worth less than originally expected, the buyer may have to come to the table with more cash. That is easier to do knowing that the buyer has additional cash, which is shown by a larger down payment.
3. Limit Contingencies
A less complicated offer is an appealing one to a seller. If you can make an offer with fewer contingencies than the next one, yours will stand out more. Since it is a seller’s market, a homeowner that is listing their property wants the path of least resistance.
The terms of an offer make a huge difference in it getting accepted or not. Limit the number of contingencies that you have in place. This will increase the chances of you successfully buying your next home. Many homes get multiple offers after getting listed on the market. If you want to win the bidding war, make your offer as appealing and easy to the seller as possible.
Buying Your Next Home
Buying in a seller’s market will be challenging—no doubt about that. There is a small window of time that you will have to make your offer to buy a property and execute it to the best of your abilities.
Follow the advice of a trusted real estate agent that you feel confident working with. They know better than anyone when it comes to the current market and how to make an offer stand out. Remove friction from your offer. That will help the seller make the right decision and hopefully choose you when they are ready to sell their home.