8 Tips for Buying a Home in a Seller's Market
While buying a home is always challenging, it’s especially so in a seller’s market. That’s because there are more buyers than there are sellers in the market. Therefore, you can end up getting into bidding wars with other prospective buyers – and paying a lot more for a home. Here are some helpful home buying tips that can help you come out on top when buying a home in Bend, Oregon.
1. Hire a Good Real Estate Agent
Buying a home in a seller’s market requires a lot of strategic planning and action. Therefore, you can help yourself out a lot by finding a good real estate agent to work with. A Duke Warner agent knows your local Central Oregon housing market really well – and can help you find that “diamond in the rough” that other buyers might be overlooking.
2. Get Pre-Approved for a Mortgage
In a hot housing market, many real estate agents won’t even consider working with you unless you are already know that you can afford to buy a home. That means before you go house hunting, you need to get pre-approved for a mortgage with a lender. The lender will then give you a letter stating how much you can afford to borrow that you can show to real estate agents. Furthermore, mortgage pre-approval makes you look far more credible to sellers.
3. Finding the Perfect House
When it comes to house hunting in a seller’s market, it can be more difficult to find the perfect home. That’s because when the inventory of housing stock is limited, you can’t afford to be too choosy. Another buyer will likely be around to snatch up a house that you passed on. Therefore, you need to adjust your expectations, as well as make exceptions for your housing criteria. For example, you can always remodel an outdated kitchen or bathroom later.
There’s still hope- check out our guide to finding the perfect home for your family!
4. Be Proactive
House hunting in a seller’s market also means that you have to constantly keep an eye on new listings as soon as they hit the market. Search for homes year round. This is especially true when buying a home in Bend, Oregon- homes go very quickly here! Therefore, as soon as you see a listing that you are interested in, contact your real estate agent immediately to schedule a showing. You can also register with real estate sites that will send you text or email alerts when new listings meet your specified criteria- just make sure to avoid any scam sites.
5. Don’t Make Lowball Offers
If you want to look like a credible, serious home buyer to sellers, then you are going to have to forget about engaging in lowball tactics when it comes to making an offer. Sellers know that they have the upper hand in a housing boom. Therefore, when you make an offer, it needs to be near – if not higher than – the listing price. Remember, you are not the only one buying a home in Bend, so if you want your bid to stand out, it needs to be competitive.
6. Practice Price Discipline
A major downside of buying a home in a seller’s market is that you can end up paying a lot more money than you can actually afford. For instance, if you get into a bidding war with other prospective buyers, the price of the home can skyrocket. That’s why you need to be disciplined about how much you can really afford to pay for a house. Then, if the price goes above that point, you should walk away.
7. Don’t Be too Demanding
When it comes to making an offer on a home, you need to understand that have less negotiating power in a seller’s market. Therefore, you can’t attach a huge list of demands to your offer. For instance, you want to think twice before asking the seller to make changes to the home as a condition for your offer. Instead, you should be willing to accommodate the seller’s needs – like being flexible about the move-in date.
8. Consider Waiting Until the Market Cools Down
Lastly, if your situation warrants it, you might be better off waiting to buy a home until the housing market cools off a bit. This might be a good option if you are a first time buyer. Doing so could help you find a nicer home for less money. Although one drawback is that it could take years before the housing market cools down. It’s at least something to consider when going over your budget and housing needs.
You should never let yourself get pressured into buying a home – even when it’s a seller’s market. Your home buying decision will have a significant impact on your future.
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