Is your lease ending and you're getting ready to purchase a new home, but everyone is telling you that it's a seller's market right now? If so, you may not be aware about how that impacts the home purchasing process. Here is what you need to know about this type of real estate market.
Know What A Seller's Market Is
A seller's market best describes a situation in real estate when the conditions favor the seller. This typically means that there are very few homes for sale, but many more buyers interested in making a purchase. This gives the seller a distinct advantage when it comes to pricing and negotiation that can make it difficult to purchase a house that you want.
One thing you must understand about a seller's market is that homes tend to go quickly. It is entirely possible for a home to be listed in the morning and then have an offer later in the afternoon. This is especially true if it's a desirable home that is priced correctly. This means that you need to act on real estate quickly. If your agent approaches you with a potential home on a Monday, don't say that you'll put off a showing until the weekend. The home may be gone by then.
It also helps to search the online real estate listings every single day to see what is new. You don't want to take on this task once a week, because homes can come and go within a matter of days. Set up some search parameters, such as an area and price range, and take some time each morning to do some searching.
Don't Get Into A Bidding War
You may find a home you love and be told that there are multiple offers on the table. Always make the best offer of what you are willing to pay for the home based on what you think it's worth, but don't go higher. There will be other homes, so there is no point in paying more than you are comfortable with in a bidding war just to have your offer accepted. You'll end up with regret later on.
If you are unsure if you are making an offer that is too high, work with your agent to determine what you should offer. They can look at recently sold homes in the area that are similar and tell you if the home is priced too high or too low.