It is no secret that the real estate market tends to be cyclical in nature. Over a period of months or even years, the pendulum will swing back and forth between a buyer’s market, a time when there are plenty of properties for sale and buyers have significant power to negotiate a favorable purchasing price, and a seller’s market, when tight housing inventories result in increased buyer competition that drives prices higher.
While a seller’s market obviously poses a greater challenge for prospective buyers, it doesn’t necessarily mean you should wait until market conditions change before starting the search for the perfect home. The following tips can help buyers get the best deal in a tight housing market:
- Get preapproved for a mortgage: Remember, you will likely be competing against one or more buyers for a property. Having your financing in order prior to making an offer can give you an edge over other buyers, as it shows you are serious about purchasing the property and that you have the financial means to do so. Preapproval carries more weight than getting prequalified, as it indicates the lender has actually taken the step of verifying your purchasing capacity.
- Be ready to do some shopping: The dearth of suitable properties during a seller’s market typically requires additional time and effort to find the ideal home. A casual weekend search is likely to produce unsatisfactory results. You may have to expand your search efforts to include attending weeknight showings and possibly visiting properties during your lunch break. Make full use of the Internet to help you target the properties that best meet your living and budget requirements.
- Be flexible: You will need to be more flexible during a seller’s market with regard to items such as contract dates and deadlines, as a buyer who is more willing to accommodate the seller in these areas is also more likely to make an acceptable offer. Strongly consider limiting the number of contingencies (home inspection, title sale and transfer, etc.) included in your offer.
- Be prepared to pay the full asking price: The presence of multiple potential buyers for one property means that you will probably have to pay the listed price — or perhaps even a higher price — for the home. Making a lowball offer is a sure way to quickly eliminate yourself from the bidding process.
Choose an Experienced Buyer’s Agent
Because of the additional challenges posed by a seller’s market, it is vital to choose an agent with extensive experience and expertise in this area. If you are searching for a property in South Central Pennsylvania or Northern Maryland, a CENTURY 21 Core Partners agent can be your biggest ally. No real estate company understands the local real estate market better than us. We also offer the most technologically advanced tools, such as a highly intuitive website and a robust mobile app to make your property search go much faster and easier.
Contact CENTURY 21 Core Partners Today!
To learn more about how CENTURY 21 Core Partners can help you purchase your dream home in even the tightest seller’s market, give our York office a call at 717-718-0748 today!