Tips for Buying in a Seller's Market

If you are a home buyer in this crazy real estate market, I FEEL FOR YOU! I know it can be frustrating. Maybe you have put offers on multiple homes and lost out on all of them and are feeling discouraged. But hang in there! Inventory seems to be rising (slowly but surely), and sure enough the market will slow down.

But in the mean time, here are some tips on how to buy a home in an extreme seller's market...

Tip #1: Make sure to connect with a Realtor. (with ONE Realtor - don't talk go look at homes with more than one, find someone you connect with, and stick with them.)

Creating a relationship with your Realtor is very important. They are the one that advocates for you and your needs. You need to make sure they understand your situation, what you want, and what offer you are capable of making.

There are many different ways to write an offer that stands out, and having a Realtor that knows your options and how to navigate them towards what the seller's are looking for is crucial.

This also means your Realtor should make it a point to connect with the listing agent before submitting the offer. Your Realtor can find out maybe the seller's want a 25 day close, or maybe it is important to them to use a certain closing attorney. These are things you as a buyer can be flexible on, that will give the seller's what they want and help your offer stand out!

Tip #2: When you see a house online that you think you may like, tell your Realtor IMMEDIATELY.

Being first in this market can sometimes give you an advantage. When you see a home you like online, tell your Realtor and get there for a showing ASAP! Don't wait a few days. I can guarantee it will be gone by then. This will show the seller's that you are serious, it will also give you the advantage of getting your offer in first before any others. Your offer may look exactly like what the seller's want and accept it right away!

Tip #3: Make sure your lender and Realtor are communicating.

Your lender can play a big role in the offer process as well because they know exactly what you can afford/what you can do with your money.

If you have the funds to offer over asking and are comfortable with it, do it. Make sure your lender is aware and gives the OK on this.

If you have the funds to waive that appraisal contingency and are willing to pay a little extra cash at closing if your home doesn't appraise for purchase price, maybe this is a good option for you if the house is exactly what you are looking for. (Remember, a lender will not loan you any more than what the home appraises for. You can opt to pay the difference in cash at the closing table.)

Tip #4: Steer clear of contingencies and asking the seller for things.

If you really want the house, ask the seller for as little as possible. You can do this by:

1. Asking for no closing costs. (Given you have the funds to pay the full amount of closing costs - check with your lender.)

2. Waive the due diligence period. (Also known as the inspection period. This would be giving up those 5-10 days after you go binding to get an inspection and either decide to back out or ask the seller for repairs. If you know you want the home and are 100% sure, you don't need to have days to back out. Get an inspection after you purchase the home and fix the important things then.)

3. Don't ask for a home warranty or the seller's couch in your offer. (While these things are normal to negotiate for in a buyer's market, these things aren't worth losing your dream home over in today's seller's market.)

4. If you have a home to sell before buying, maybe speak with your lender and see what your options are so you don't have to make your offer contingent on your current home selling. (You can still work things out with your Realtor and lender and make it a point to close on your current home and new home on the same day, but if you don't have to wait for your house to sell, avoid making your offer contingent on this.)

5. Write a letter to the seller to create a connection with them on an emotional level. (This doesn't work all the time, and some seller's don't really care, but sometimes you can pull on the heart strings a little and this can help your case.)

Make sure to speak with your Realtor and Lender about what your options are and discuss how you can make the strongest offer with those options. As always if you are in the North GA area and want to talk about purchasing a home in 2021, I am always available!