Published June 5, 2018
How To Buy A Home In A Tight Seller's Market
Shopping for a home can feel like a daunting task right now.
Home buyers are facing two big issues - how to find the right home with lack of inventory and how to beat out the competition before their dream house is snapped up by someone else.
According to MRIS.com (Maryland’s Multiple Listing Service), the inventory of houses for sale in the Baltimore area has continued to be on the decline for 32 consecutive months. In April, new listings declined by 11.4%. The average days-on-market was cut in half, down to 18 days and sellers were receiving 96.6% of asking price on average. Home prices are also on the rise with an increase of almost 5% since last year.
Here are some tips to help you win in this market.
Be Ready To Make An Offer When You See What You Like
Before you start looking at houses, find a lender to work with to get pre-approved for a loan.
Pre-approved is not the same as pre-qualified. Prequalified means the lender *thinks* you will be approved. Pre-approved means the lender has reviewed your credit history, financial documents, and made a determination that you would be approved for funding to a specific limit.
Shop around for the best financing so you will be ready to make a strong offer when the right house comes along. Having the pre-approval and proof of funds letter can help win the bid when other buyers are only pre-qualified.
Find A Good Buyer’s Agent To Help You Navigate The Market
You might think “Why do I need an agent when I can see everything online?” Websites that claim to show everything available are often not accurate because these sites can not see the data available to licensed agents using the Multiple Listing Service (MLS). Buyer’s agents specialize in learning the market in their area, networking with other agents to find great deals before they go on the market and they have access to the most up-to-date information available through the MLS.
A buyer’s agent will not only be able to help you zero in the area and type of home you are looking for, they are also great strategists. They negotiate with other agents on a regular basis and know many tactics to help your bid float to the top of the pile.
Don’t Judge A House By Its Listing Photos
Photos don’t always convey the full story of the house, the feel or the layout. The best way to judge a house is by seeing it in person. Drive by the neighborhood and check out the house and the surrounding area, then have your agent schedule a showing. Keep in mind that cosmetic things are easily changed!
The Agents Need to Talk!
Make sure your agent actually picks up the phone and calls the listing agent to have a conversation with him. By speaking with the other party, your team can gather information on the seller’s motivation, other interest, and nuances that could help you craft a stronger offer.
When You Find The Right House, Make Your Best Offer
Your first bid might be the only opportunity you’ll have if the seller is receiving multiple offers. Consider the value of the house and why you want this specific house. Offer the highest amount you are comfortable with to show that you are a strong buyer. Be flexible on timing for the close. If the seller wants to close in 60 days, have your agent let them know that you’re willing to work with them. If they want to close fast, be ready to act on that speedy time frame - this is where having your financing lined up will pay off in your favor.
Consider Purchasing As-Is
By submitting an As-Is offer you are letting the seller know that you will not ask for minor repairs that can cause aggravation and cost money. Even with an As-Is purchase you still have the right to do an inspection and terminate the contract if there are any major issues.
Offer A Large Earnest Money Deposit (EMD) With Your Bid
Earnest money shows the seller how serious you are about buying their house. A larger deposit coupled with a strong financing packet can win the bid when other buyers are offering less or have less than attractive financing.
If you're thinking about buying or selling and would like a no-obligation consult to see how we can serve you, contact The Norman Home Team at 443.489.5225! Visit our website at www.TheNormanHomeTeam.com for information on all the services we provide! We look forward to hearing from you and helping you achieve your goals!
443.489.5225
Info@TheNormanHomeTeam.com
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