BUYING IN A SELLER'S MARKET

WHAT IS A SELLER'S  MARKET AND SHOULD YOU BUY DURING ONE? ARE YOU PREPARED AND WHAT DO YOU NEED TO KNOW TO SECURE THE HOME YOU WANT.

A SELLER'S MARKET OCCURS WHEN THERE IS MORE DEMAND THAN SUPPLY. IN OTHER WORDS, THERE ARE MORE BUYERS THAN THE INVENTORY THAT EXISTS. MANY PARTS OF THE COUNTRY ARE EXPERIENCING A SELLER'S MARKET. THE INTEREST RATES ARE STILL LOW WITH INDICATIONS THAT THE FEDS WILL RAISE THEM AGAIN A FEW MORE TIMES THIS YEAR.

LET'S TALK ABOUT PREPARATION. DO YOU HAVE A PRE-QUALIFICATION OR PRE-APPROVAL LETTER TO SUBMIT WITH THE CONTRACT. IF YOU DON'T, THE SELLER AND THE LISTING AGENT CANNOT TAKE YOU SERIOUSLY. ARE YOU READY TO SEE HOMES OR IS IT NOT A REAL PRIORITY FOR YOU? GOOD HOMES GO VERY QUICKLY AND THE SELLER IS UNDER NO OBLIGATION TO MAKE THE HOME AVAILABLE FOR A SPECIFIC PERIOD OF TIME. IF A BUYER SEES IT AS SOON AS IT COMES ON THE MARKET AND OFFERS THE PRICE AND TERMS THE SELLER WANTS, THE SELLER CAN STOP ALL SHOWINGS. WHY WOULD A SELLER DO THIS?

THE SELLER MAY HAVE A NEWBORN OR VERY YOUNG CHILDREN AND WHEN THE RIGHT OFFER COMES, THE SELLER WILL MAY TAKE IT TO AVOID ALL THE STRESS SHOWING A HOME CREATES ON A YOUNG FAMILY. THE SELLER MAY HAVE FOUND A HOME HE OR SHE WANTS TO PURCHASE. AS SOON AS THE SELLER GETS A GOOD CONTRACT, THEY TAKE THEIR HOME OFF THE MARKET SO THEY CAN MOVE FORWARD WITH A CONTRACT ON THEIR DESIRED HOME. THOSE ARE JUST TWO EXAMPLES OF SELLERS WHO WILL TAKE AN EXCELLENT QUICK OFFER.

DO YOU HAVE AN EXPERIENCED AGENT REPRESENTING YOU OR ARE YOU JUST CALLING LISTING AGENTS? AN EXPERIENCED AGENT KNOWS YOU; KNOWS YOUR NEEDS AND HOW TO POSITION YOU IN THE BEST POSSIBLE LIGHT TO THE LISTING AGENT OR SELLER. AN EXPERIENCED AGENT OFTEN NETWORKS WITH OTHER AGENTS. AGENTS TRUST AGENTS WHO GET TRANSACTIONS FROM OFFER TO CLOSING. REPUTATIONS IN THE REAL ESTATE BUSINESS MATTER.

SEE THE HOME AS SOON AS IT HITS THE MARKET. BE PREPARED WITH YOUR CHECKBOOK TO MAKE AN OFFER WITH A GOOD EARNEST MONEY DEPOSIT. UNDERSTAND THAT NO HOME IS PERFECT INCLUDING NEW CONSTRUCTION. IF THE HOME FITS THE MAJORITY OF YOUR NEEDS, IT MIGHT BE THE HOME FOR YOU.

REALIZE THAT IN A SELLER'S MARKET, MULTIPLE OFFERS ARE THE NORM. MOST AGENTS HAVE A WAY TO HANDLE MULTIPLE OFFERS. DISCUSS THIS WHEN YOU BEGIN TO WORK WITH YOUR AGENT. MAKE SURE YOU FEEL COMFORTABLE WITH THE PLAN BEFORE YOU BEGIN TO LOOK. TRYING TO FORMULATE A PLAN WHEN YOU FIND YOURSELF IN THE MULTIPLE OFFER SITUATION CAUSES STRESS. BUYING A HOME IS STRESSFUL ENOUGH!

EVERYONE WHO IS GOING TO PURCHASE THE HOME SHOULD SEE IT. SOMETIMES YOU MAY NOT HAVE TIME FOR A SECOND SHOWING IF THERE ARE MULTIPLE OFFERS.

UNDERSTAND THAT IN MOST CASES, THE HOME HAS TO APPRAISE FOR THE PURCHASE PRICE. BUYING A HOME IS NOT A CONTEST. IT IS A HUGE INVESTMENT. BUYER'S REMORSE WILL ONLY HURT THE SELLER AND YOU. DISCUSS THIS FEELING WITH YOUR AGENT BEFORE YOU BEGIN TO LOOK AT HOMES. DON'T GET CAUGHT UP IN A WHIRLWIND BIDDING ON A HOME JUST BECAUSE OTHERS ARE DOING IT. ONE HOME MAY WORK FOR ONE BUYER BUT NOT FOR ALL BUYERS AND MOST IMPORTANTLY, IT REALLY MAY NOT WORK FOR YOU.

KEEP YOUR NEEDS AND WANTS IN MIND WHEN VIEWING PROPERTY. NEEDS ARE THE MOST IMPORTANT AND WANTS MAY BE ABLE TO BE ADDED AFTER PURCHASING. FOR EXAMPLE, YOU MAY NEED A HOME WITH FOUR BEDROOMS AND ALSO WANT A FIREPLACE. IF THE HOME HAS THE BEDROOMS YOU NEED AND SPACE TO ADD A FIREPLACE AND MEETS YOUR BUDGET, THAT COULD BE THE HOME FOR YOU.

FINALLY, KEEP A POSITIVE ATTITUDE AND THE JOY ALIVE IN PURCHASING A HOME. YOU MAY LOSE ONE TO SOME OTHER BUYER BUT HOMES COME ON THE MARKET EVERY DAY. REAL ESTATE IS CYCLICAL AND AS OFTEN AS IT IS A SELLER'S MARKET, IT IS JUST AS OFTEN A BUYER'S MARKET.

SINCERELY,
DEDE OLDS
ASSOCIATE BROKER
COLDWELL BANKER PRIME PROPERTIES
518-225-6971
dede.olds@coldwellbankerprime.com

Dolores D. Olds

Dolores D. Olds

Licensed Associate Real Estate Broker
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