Thoughts about buying in a sellers market

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Thoughts about buying in a seller’s market

 

You may hit a few obstacles. For example:

  • Every home you like is already under contract.
  • Nothing matches your criteria or “wish list” in your price range.
  • You keep running into bidding wars and losing.
  • Prices keep going up.

 According to the Sarasota Manatee Association of Realtors, the average price for existing homes is up nearly 15% year from this time last year.

 

Buying a home in today’s market can be challenging, but here are a few ideas on how you can get a leg up:

 

Get a Financial Leg Up

  • In a seller’s market, cash is definitely king.
  • If a cash offer is not be an option for you. If that’s the case, then do the next best thing: “Get pre-approved with a lender that offers legitimate, credit-underwritten pre-approvals.
    • Mortgage pre-approval goes further than prequalification because you submit all the required paperwork up front.
    • The bank then verifies the amount you can afford to pay for your next home.
    • Mortgage pre-approval takes the guesswork out of your home search and shows sellers you can back your offer up with real money.
    • You can close faster, with less “loan”-oriented stress.

 

Don’t Let Impatience Wreck Your Budget

  • It’s a challenge to find exactly what you wanted in your price range.
  • Resist the temptation to bite off a bigger chunk of mortgage debt just to land a home – don’t over bid on a home.
  • Patience can be hard to come by when you feel pressure to beat other buyers to the punch – but try not to get so carried away you forget the financial goals you’re working toward. A good rule of thumb is: 
    • keep your mortgage payment to no more than 28% of your monthly gross income.
    • This can be overcome by having a wonderful real estate agent:
      • someone who will be honest with you,
      • is wise in the ways of negotiations,
      • and can help you navigate the process.
    • A good agent is more than a tour guide. They counsel you through every twist and turn of your home purchase, inspiring confidence along the way. Look for an agent who brings lots of expertise to the table. You can trust a seasoned expert to apply out-of-the-box techniques to help you find—and get a great deal on—the home that’s right for you.

 Keep Your Options Open

  • Consider new construction.
  • Broaden your search
  • Limit your search to homes with a healthy margin between list price and your max budget. That way you can up the ante without breaking the bank.

 Keep Calm and Carry On

 

Buying a home is stressful in any market – but in a seller’s market there is extra pressure.

  • This can be overcome by having a wonderful real estate agent:
    • someone who will be honest with you,
    • is wise in the ways of negotiations,
    • and can help you navigate the process.
  • A good agent is more than a tour guide. They counsel you through every twist and turn of your home purchase, inspiring confidence along the way. Look for an agent who brings lots of expertise to the table. You can trust a seasoned expert to apply out-of-the-box techniques to help you find—and get a great deal on—the home that’s right for you.