SELLERS' Market at-a-glance:
- MORE BUYERS than Homes for sale
- PRICES tend to be HIGHER because of increased demand
- Homes SELL QUICKLY
- More likely to be MULTIPLE OFFERS on a home, which gives sellers negotiating power (and conditional offers may be rejected)
Trying to buy a property in a Seller’s Market can be frustrating; if you’re looking to buy in a difficult seller’s market, there are things you can do to improve your likelihood for success.
- Get pre-approved for a mortgage first, so you know how much home you can afford.
- in a seller's market; depending on your price range, you may want to look for homes listed at a lower sale price then what you are pre-approved for. With more buyers then sellers many listings tend to sell over asking price
- Don’t go it alone—work with a professional –
- You are smart and capable of negotiating your own deal. But, trying to buy a property without a realtor is like representing yourself in court without a lawyer – you might muddle your way through but you will make lots of mistakes.
- Realtors have the inside track on new listings, have a successful track record negotiating and have substantial experience navigating the many risks and pitfalls involved in buying a home.
- Put forward a strong offer with a significant deposit amount
- Home sellers will take your offer more seriously if you are able to offer a larger deposit with your offers. A higher deposit will show you are serious about your offer.
- Move quickly on a home if you like it (and be aggressive without being annoying)
- if you find a home you really like don't hesitate as chances are others will like it too. Visit the home with your realtor and have them get you all the necessary information on the listing. With the help of your realtor decide on an offer price.
- Make your offer as attractive and uncomplicated as possible.
- In a seller's market going in with less condition in an offer will make your offer more attractive to sellers. Always speak to professionals to see what conditions you can go without and how you can make the offer more attractive. (i.e. mortgage, home inspection, contingency on the sale of your existing property, shorten the closing date or come up with a larger down payment etc..)
- Be agreeable and responsive
- be ready to negotiate with the seller if they want to make some small changes before they accept your offer.
- remember that in a seller's market the sellers have a bit more negotiation power and you may have to accept some terms that are not the best for you. (eg. closing date, deposit amount, appliances etc...)
The strategies, advice and technical content in this publication are provided for the general guidance only and benefit of our clients. This publication is not intended to provide specific mortgage, financial, investment, tax, legal, accounting or other advice for you, and should not be relied upon in that regard. Readers should consult their own professional advisor when planning to implement a strategy to ensure that individual circumstances have been considered properly and it is based on the latest available information.
