When buying a home, it's vital to be aware of market conditions. If sales are happening faster than new listings are coming on the market, this is called "a seller's market". In this environment, buyers face unique challenges to get the home they want. Markets can change almost overnight and your agent will be the best source to keep you informed about what your individual market is doing. When the market changes to a seller's market, a buyer's home buying strategy needs to change with it. In a seller's market, a home buyer will be more successful using different techniques than when in a buyer's market (lots of inventory and low sales).Time is of the essence!
Remember, you might not be the only buyer. In a Sellers Market, multiple offers become more common or you may see a very fast sale for any home that comes onto the market. That's because by its very nature a seller's market is defined in part by low inventory and lots of home buyers. A beautiful home that is priced well can attract more than one offer or have other buyers ready to move very quickly. Your agent can help you stay on top of the market by networking with their contacts to find out about homes coming to the market but aren't yet listed and by setting you up with a personalized search alert to let you know about any new listings as soon as they are posted.
Jump on getting in to see the home. Don't be that buyer who wants to wait until the weekend to view a home in a seller's market. By the weekend, that home could be sold. Try to be one of the first showings. Sellers usually don't enjoy having buyers come through their homes at all hours of the day, so most would like to see their home sold quickly. If you write a good offer, a fast offer and a clean offer, your chances of acceptance are far better than those of a buyer who is unprepared. It may astonish you to know how many buyers are often unprepared.
Once you've found the home you love, be ready to act!
Get your Mortgage Pre-approved!
Knowing what you can afford will help you when making any offers. If you are in a multiple offer situation, knowing your limits can help you determine your negotiation strategy.
Making the OFFER
PRICE Price is not always the most important factor, but depending on the seller and the amount of potential competing offers, realize you may need to offer more than the amount the seller is asking. Your agent can be indispensable during this time to help uncover any of the seller's potential motivations and goals and to provide you with advice in putting together the most attractive offer you can put forward.
Money Deposit. While not a necessary part of the contract, offering a larger deposit might look very attractive to a seller. It shows your commitment to the purchase and your ability to financially afford the property. Your agent can provide you with advise about an appropriate deposit amount. This deposit also forms part of your downpayment of the purchase upon completion.
Keep the offer simple. The seller could potentially be looking at multiple offers or know that they will soon get another offer if they don't accept yours. Having complex requests in your offer can be a deterrent to a seller. Your agent can advise you about which subjects to include in your offer that will ensure you're protected legally, while also helping you focus on which points are the most important to you. For example, the seller may not be willing to do any repairs uncovered during inspection of the property.
Possession Dates. Your agent can find out what dates are important to the sellers. Some sellers may want to sell quickly, others may want to have more time if they are still trying to find their next home. Understanding and meeting their timeline goals will make your offer seem more attractive.
If you're ready to start your home search, call us today at 604-817-7173 or email us at jyork@yorkassociates and find out how we can help you get your dream home.