Buying a house in a seller’s market
If you are able to wait out the seller’s market, think about doing so. It can be very stressful looking for a house when properties are flying off the market after two days. You may even end up putting offers on houses that you don’t actually like just to have something, and let’s be honest, that won’t make you happy in the long run.
If you are in a situation where you either have to find something right now or if money is not an issue for you (way to go!), there are a few things you should do to be prepared for the fight!
Find a really great real estate agent that will fight for you. Word of mouth is a good way to find someone. Make sure you are working with someone that is a licensed Realtor. He or she will have all the tools to make your search easier. Also keep in mind that once you establish a relationship with a real estate agent, while they may partner with other agents, they look down on allowing you to switch to another agent in their network. So make sure you like the one you choose and that he or she has your actual needs in mind (not what they think you should need).
Have your finances figured out and get pre-approved. There are many mortgage calculators out there. Use one to figure out a ball park figure of what you think you can afford. Make sure you are looking at your actual budget to see if you are comfortable making said mortgage payment. Get in touch with a mortgage broker or if you are a member of a credit union you can usually get good interest rates there. Mortgage brokers will need all kinds of financial documents from you: pay stubs, tax returns, bank statements, etc. Be prepared! Once you’ve figured out how much house you can buy, get a pre-approval letter from your broker. It’s especially important to have this in a seller’s market because there is a good chance that there will be multiple offers on all the houses you are interested in. A pre-approval letter will show the owners that you mean business.
Be prepared to look at properties the moment they come on the market. I’m not kidding you. In a seller’s market properties will have offers within the first couple of days if they are priced right. If you find something you love, or if your agent sends you a listing that looks interesting to you, go as soon as possible! If you love the house, put an offer on it immediately! Trust your agent if they have something to say as far as price goes, but always make your own decision as to what your offer will be. If you are able to put a cash offer on a house, do it! Sellers really like that. Maybe it’s less paperwork. I’m not sure… I am currently unable to put a cash offer on a house.
Write a letter to include with your offer stating why the seller should pick you. When there are multiple similar offers on the same property a personal letter telling the seller why their house is the best for you and your cute kids may clench the deal!
Steel your heart and be prepared for many disappointments. Buying in a seller’s market is tough. You’ll probably have to sacrifice some of the things you want in a home, put offers on many houses that you don’t get, and pay more for said home than you expected.
All of this to say, good luck! And if you can wait, wait.