Buying a Home in a Seller's Market

Market conditions are going to determine how challenging finding a home will be. When you happen to be looking for a home in a "seller's market" you are searching in a market that has more buyers than homes available for sale.

This results in reduced listing times (amount of time the homes stay on the market), multiple offers on homes, home prices getting bid up, reduced time to decide on a home, and home value increase. Due to these factors, buyers are faced with a challenge to act fast.

Here are a few tips to help if you find yourself in this situation as you look for a home:

1. Make sure you can position yourself in a flexible living situation as you look for a home. If you are renting, talk with the landlord and see if you can work on a month-to-month lease as you look for a home. This prevents you from making desperate decisions. If you are selling your home and looking to buy another, do your research ahead of time to make sure homes are available and there isn't an intense seller's market, if you are looking to buy in a hot market, it may be wise to plan to rent while you look for a home to buy.

2. If the seller market is really hot in a particular town that your are looking to buy in, look to surrounding towns where you can get a comparable home with comparable town amenities. When a particular town is very hot, chances are good that it spreads to surrounding towns with comparable amenities. So don't dismiss other options out there that can turn out to be great opportunities to buy.

3. Be decisive. Know exactly what you want and/or works for you and what you will pay for it. This requires research and good discussions with your realtor. Understand the home comparable sales, $PSF of homes sold, inventory, and market trend. Also know the home styles, sizes, bed and bath count, property size, neighborhood, street, tax levy, town amenities, etc. that you would be comfortable with. The more you can dig into the market as well as the understand what you want in a home, the more decisive you will be to act fast and feel good about it.

4. If you need financing, make sure you are pre-approved!

5. Don't get emotional. Know what you want and know that the right home will come. You may lose a house our two when you put offers in against multiple offers, but don't let frustration get to you. There will be another great home coming on the market soon that will be better. Always keep your head up and keep trying!

For any questions, contact me through our Contact page.

Ben Stefan