Buying a Home in a Seller's Market

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Real Estate

In a Seller's Market, sellers have the upper hand because there are more buyers looking for homes than there houses for sale.  If you are looking to purchase a home in seller's market, your success may depend on being aware of the following.

Before you even begin your search, you should get pre-approved with a local lender.  This will ensure that you know what price range you can truly afford to look in.  Even more important it tells a seller that you have the financial means to purchase their home.  Be sure to take all your income and expenses into consider along with the information from the lender to decide how much you really can afford.

A competitive market is not the time to make a low offer or to ask a seller for a lot of concessions.  Start out with a competitive and realistic offer.  In a seller's market, multiple offers are common.  You may be competing with several other buyers.  You may want to consider an offer lower than your max and include an escalation clause.  In a very competitive market the winning bid may very well be more than asking price.  Consider this in advance and decide if you are willing and able to make an offer higher than asking.

There are many aspects to an offer other than price.  An experienced real estate agent can guide you on other ways to compete.  When looking for an agent, interview at least 3 and find someone who is a good fit for you.