What is the difference between a buyer’s and a seller’s market?
As its name suggests, a buyer’s market is beneficial to the buyer and a seller’s market is beneficial to a seller. A buyer’s market is a market in which the supply is higher than the demand. A seller’s market exists when the demand for homes exceeds the supply, or there are more buyers looking to purchase a home than there are homes available. The outcome is multiple offers on a single property which leads to a bidding war.
If you are lucky enough to be experiencing a seller’s market in your area, it is indeed a fabulous time to sell. Not only will your days on market be fewer, you might also receive multiple offers. This could drive up the sales price. But, what if you’re the buyer looking for a home to purchase…..
Here are some tips….
Get a financial leg up
Choose a lender and get your finances in order. Consult with her to find out how much of a mortgage you can afford and get a pre-approval letter to submit with your offer. The seller won’t want to accept an offer if they are unsure that the buyer can afford to buy the house.
Don’t let impatience ruin your budget
Resist the temptation to lock into a mortgage that you really can’t afford just to land the home. Being “house poor” is generally not a good idea.
Keep your options open
Be flexible on location, type of architecture, number of bedrooms, existing vs. new construction, school district, and other specifics on your “want” list. Broaden your search.
Are you both a Buyer and Seller?
Prepare a back-up plan in the event that you have sold your home quickly and have not found your new home yet. Reserve temporary living options.
Keep calm and call Stapleton Realty
Buying a home in a seller’s market is very stressful. Hire a Stapleton Realty Agent to help you navigate through the process. We often know about properties that are coming on the market.