A seller’s market is one in which inventory is low and demand is high so that homes sell quickly and bidding wars are common. This perfectly describes the market in the Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas. In fact it, describes most markets across the country right now. This is great for sellers but presents some definite challenges for buyers. But, although more difficult, it is still possible to buy a home that meets your needs in this kind of market. To help you out, we offer these 5 tips for buying a Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas house in a seller’s market.
1. Start Early and Do Some Research
It’s a good idea to start early in order to get a sense of the exact nature of the seller’s market in the area where you want to buy. It just takes a little research and legwork.
“Spend some time looking at what’s available before you get serious. You should visit the local towns you are considering and walk around potential neighborhoods on the weekend. We even can provide a personalized town tour to help you learn more about the area. Next, We can provide daily updates of new listings and properties listed exclusively with Coldwell Banker. Take note of how long homes are listed before a contract is pending. (In an especially hot market, it won’t be long.) We can also provide reports of recently sold listings to get a sense of how much homes are really going for compared to their listing prices.
The idea here is to get a feel for just how hot the local market is “without the pressure of feeling like you need to make an offer.” It will also provide you the opportunity to discover more about the kinds of homes and the neighborhoods that meet (or don’t meet) your needs. You will simply be in a better position when you go into a transaction prepared and knowing what to expect.
We are a local Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas agent and can provide valuable assistance during this early preparatory stage. To learn more, just call 917-608-7277.
2. Be Prepared to Compromise
Certainly, you want a house that ticks all your must-have boxes and as many of your like-to-have boxes as possible. But in a Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas seller’s market, you still have to be prepared to compromise in some areas.
Holding out for ‘the one’ may not be an option in a hot market. It may be smarter to approach home shopping by thinking about ways you could make a ‘good enough home’ work.
If you can remain flexible in your wants and expectations, you simply have more options in a seller’s market. So give some serious thought to what is most important to you – what you have to have and what you can compromise on. In many cases, you can do some renovations after closing and match more of your needs.
3. Get Pre-Approved and Have Proof of Funds
Remember, too, that in a seller’s market homes sell fast and you’ll likely be bidding against other (perhaps several) buyers. So you must have ready to hand those documents that prove you’re a serious buyer – that is, your pre-approval letter and proof of funds to cover the down payment.
When you enter into a multiple-offer situation, speed and proof of ability pay are often crucial. You may only a day or two submit an offer after viewing a house. Getting pre-approved and having your pre-approval letter to show that you can actually get the financing, as well as having proof that you make the down payment, can expedite matters. We can help you find a great mortgage professional.
4. Make Your Offer More Attractive
In a hot seller’s market, multiple offers are the norm. You need, then, to do something to make your offer more attractive than the others. Waiving or severely restricting contingencies is an effective way to do it, but there are more and other things you can do.
“Aside from waiving contingencies, there are other ways you can make your offer more enticing to sellers. Introducing the possibility of a rent-back agreement or setting out a closing timeline that will work well for the sellers can help.”
We can recommend and help present these deal-sweetening tactics to help you present the strongest offer possible in the Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas.
5. Find a Good Local Agent
Buying a Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas house in a seller’s market almost demands that you find and use a good local agent.
“Having a good buyer’s agent is particularly important in a hot market. You want someone who’ll alert you to listings as soon as they hit the market, if not before. Also, a good agent will know how to make your offer stand out. . . . In a market like this, there is no margin for error.”
To avoid error and meet the challenges of buying a Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas house in a seller’s market, contact us today at 917-608-7277.