Don't Make These Mistakes in a Seller's Market
A seller's market is one that where sellers can get high prices for the houses, condos and other property they put on the market. In such markets, the seller can expect to see a lot of bidding on their property as well as offers that may meet their desired price or even exceed it. If you are going to buy a property in a seller's market, you will want to avoid certain mistakes before you begin. Doing so can help you get the property you want at the price you like.
Make a Strong Offer First
In a buyer's market, you'll face lots of competition. You need to step up from the very first. If a seller thinks you're not serious, they may simply ignore you. They may also ignore any subsequent offers you make because they don't believe you're reliable. Start off by showing you want this property.
Don't Hyper Analyse
Housing prices are not always rational. You need to remember this when you're looking at a house. If it's a house you really love and you want to buy it, don't sweat the comps too much or you may miss out on the house because someone else went for it.
Find Great Help
When you have a seller's market, you need all the help you can muster. You need an experienced agent who knows the market well. Look for someone with a track record of buying and selling properties. They will know what to do and can help you figure out how to respond to the market. A great agent has been through this before and come out the other end. They can even help you figure out which properties might even be undervalued.
Another important thing that some buyers overlook is the importance of having their financing all lined up before they start. Work with a lender before you go house hunting. They will show you how much home you can afford. This way you can show the seller that you are ready to buy the second you step on the property. They know you've spoken with a lender and make the arrangements you need to make in advance in order to be able to buy the house at the price you're bidding.
Be Prepared for a Bidding War
In a sellers market, bidding wars are not uncommon. You need to remember that you're not the only person who is potentially going to bid on this property. Someone may easily come along and top your bid. You need to think about what you're going to do if there's another buyer who is also interested in the property and plans to bid on it at the same time. Have a reserve plan in mind. Don't get carried away and remember there are other properties out there you can purchase.
Pay Attention to Your Patterns
You may get lucky and get the first property you see. You may also find that properties are being lost repeatedly. If that's happening to you, you need to take a step back and consider what you might be doing wrong. In that case, you might be making a few mistakes that are hindering your ability to get the property you want. You need to think about what you can do instead.