Recently Realtor Magazine put out a “Buyer’s Cheat Sheet for A Sellers Market“. We think this a great and strategic look at what buyer needs to know when the seller has the upper hand in the market. The magazine reported that across the country we’re seeing a limited number of homes for sale and more buyers on the rise. Ironically South Florida is not seeing the same trend. Real Estate is regional in nature. Even a few miles can change the market.
So for the Sellers Market, Here are a few tips!
Be ready! You have to a buyer who’s ready to move fast. The market won’t let you take your time and decide. Know what you want and what you’re looking for and be prepared to pull the trigger quickly. If someone calls you with a great option deduce if it’s right for you and if it’s not move on.
Get Pre-Approved! Work with a mortgage company like Movement Mortgage that not only will pre-qualify you but approve you fully to purchase. This gives you ultimate bargaining power as you not only can finance a property with confidence but due to the ability to finance, it will lend itself to higher purchase price for the seller as opposed to cash offer that typically will low ball their offer.
which brings me to the last point. Don’t low ball the seller. This isn’t a market where you want to negotiate for days. Time kills all deals and while you’re still waiting to get to your highest and best, another offer may come in and snatch the house out from under you. Lead with an aggressive offer. Limit your contingencies and get the house you want. It won’t be there tomorrow.
and for the Buyers Market, Here are a few tips!
The balls in your court as they say! and Sellers may or may not be motivated to sell.
Look for a motivated seller! Most sellers who are just testing the waters will keep their prices high and above the market price. MOTIVATED sellers will be the ones with the dramatic price reductions and priced closer to market value. They’re looking to negotiate!
NEGOTIATE! There are plenty of areas that can be negotiated. If the seller is stuck on a purchase price a buyer can ask for closing costs.
“As is” means negotiate too. For most sellers typical wear and tare on a home isn’t negotiable but.. after the inspection should you find there to be greater woes in the house but the price and location are great, negotiate with the seller for repairs. The best way is for an amount to be settled on as opposed to the repairs. This was you as the buyer can better determine how to allocate those funds over time to make the repairs needed. (unless the seller can make this sweeter in some way)
Most buyers rely on the expertise of an agent but at the closing table the seller is most protected by their closing attorney. If you’re without representation, call James N Brown for a consultation and see how you can be represented at closing table. The nominal fee for great representation can save from greater expenses and headaches. As well, it grants you peace knowing someone is legally representing you with the authority necessary to protect you beyond what your Realtor can achieve. For instance, not all agents know what clauses to include in standard contracts to protect the seller from open permits prior to close.
Whether you’re in a Seller’s or a Buyer’s market purchasing a home is one of the biggest decisions a person can make. Being prepared for what to expect requires a knowledgeable and experienced Real Estate Agent. When you’re in the process you should also seek the council of a qualified Real Estate agent and work with an experienced Title Attorney.