Purchasing your first home can be very exciting and may be a dream that you have worked towards for a long time. If you happen to be buying a home during a seller's market, it may be a little bit more challenging, but not impossible. In real estate, the term seller's market refers to a market where the inventory of single family real estate for sale is low and the number of buyers is high. Thus, if you are buying your first home during this type of market, you will need to be prepared. Use the following tips to purchase your first home during a seller's market:
Get Your Financing in Order
When you are planning on buying your first home during a seller's market, it is absolutely essential to get all of your financing in order before you even begin to look at homes for sale in your area. The reason that this is so important is because you need to be able to act fast. Most homeowners in a seller's market will not take an offer seriously if a buyer does not already have a mortgage loan in place. Thus, make sure you are pre-approved, not pre-qualified, for a mortgage before you begin your home search.
Present a Solid Offer
If you find a home that you love, it is important to present a solid offer if you're buying during a seller's market. Since homes for sale are in high demand during a seller's market, you should not submit a low-ball offer or expect to negotiate back and forth on price. Depending on the area, some sellers will receive multiple offers on their home, so poor offers are typically ignored or will be turned down. Your best option is to submit an offer with the highest price you're willing to pay.
Don't Ask for Concessions
In addition to offering a fair price for a home, you should also avoid asking for concessions when you're trying to buy a home during a seller's market. A seller may be less likely to accept your offer if you ask for cash back to replace the flooring or make other home improvements. The last thing that you want is to lose out on a home that you really want to purchase because the seller received offers from other buyers who did not ask for any concessions. Make your best offer and then negotiate with the seller after the home inspection is completed.