In real estate, there are two types of markets. A buyer’s market means that so many houses are for sale that buyers can make lower offers and still come away with great properties. A seller’s market happens when there are more people who want to buy homes than there are homes for sale. The latter setup allows sellers to hold out for the best offer, making it tough for buyers to score deals. Read on to learn some real estate buying tips for a seller’s market.
Stay Flexible
Since sellers hold the power, make sure you stay available to abide by their schedules. Listen to sellers’ needs, and don’t push too hard if you can’t make an open house—sellers are looking for reasons to cross your name off their lists. The sellers have the high ground, so allow them to call the shots.
Make House-Hunting a Priority
A seller’s market is extremely competitive, so you’ll get left in the dust if you don’t make property-hunting your top priority. This doesn’t mean you need to quit your job to become a full-time investor, but you should set aside a week or two to devote significant time to this goal. Always request to see a house at the seller’s earliest convenience.
Consider a Cash Offer
When five offers fly in at once, a seller may not know which to choose—that is, unless one of the offers is in cash. If you’ve set aside money for this investment, consider making a cash offer. This is almost always more appealing to a seller, and it may even allow you to come in with a slightly lower offer and still come out on top.
Have a Backup Plan
Having other options pays. With so many different types of investment properties available, don’t feel locked into one particular plan. Know all the avenues available to you, and come up with a backup plan if you can’t secure the deal you’re looking for. Never go over your budget due to fear of missing out—that can drastically reduce your profit.
Now that you know these real estate buying tips for a seller’s market, grab the investment property of your dreams without overpaying.
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