Right now, real estate is in a seller’s market. When the market is hot like this, you need to be a smart buyer. One of the best things any buyer can do, especially in a seller’s market, is to work with the best Realtor you can find. Get referrals from family and friends. Did you know that LAWSON & CO is not only an auction house? We are also licensed Realtors selling acreage, commercial property, and residential property. All the options are on the table when you work with LAWSON & CO.
Here are some tips to help you navigate a seller’s market:
- Get Started Quickly—Don’t wait to start your house hunt. If your potential dream home is in a popular neighborhood, look at those houses now. If you are really interested in a home, get information on that house. Look at property reports, disclosures and offer due dates. You can request this through your real estate agent. You can also find this in apps like Opendoor. Be sure to look for open house dates and see if you can set up your own tour with your real estate agent.
- Have Your Finances and Pre-Approval Ready – This part can be tough for first-time home buyers. Be prepared for a popular house to have multiple offers. Be sure to be ready with your financial information and proof of funds.
- Keep Your Offer Simple— Really think about your offer. Simplify contingencies. Be clear and succinct. For example, ask for a property inspection or that the sale is contingent on receiving a mortgage commitment. Make sure your offer is well-organized and you are ready to work with the homeowners.
- Offer a Strong Sales Price— Offer a competitive and strong sales price. Seller’s will take the best offer they get so if you really want a specific property, go with the best price you can offer.
- Be Ready to Bid— Be ready to bid and give your best offer price so counteroffers are not always an option.
- Write an Offer Letter— Write a fantastic offer letter. Keep your letter concise but sweet, and don’t underestimate a little flattery. Also, include information in your offer letter why you are the right new owner for their home. Be sure to do your research on how to write a fantastic offer letter.
On the other side of a smart buyer’s coin, is unfortunately making mistakes in home buying in a seller’s market.
Here are six significant mistakes buyers make:
- Not Making Your Best Offer – Many people try to be thrifty and save money in their offer. They look at the house’s price and may wonder what it is really worth. In a seller’s market, you have to offer a competitive price.
- Over-Analyzing the Purchase Price – When you find your dream home and you think over the price too much—you run a dangerous game. If you wait too long to make an offer, you might lose your house.
- Working with an Inexperienced Real Estate Agent – When you are buying your dream home, hiring a rookie real estate agent may be a mistake. A real estate agent with more experience may bring you greater success with making your ideal home more of a reality and less of a dream.
- Not Being Pre-qualified or Pre-approved for a Loan – Make sure your finances are in order and you are legitimately able to make an offer AND can provide a commitment letter for the purchase immediately.
- Not Being Prepared for a Bidding War – Know what your budget limit is so you can make informed decisions is someone else is bidding against you for a property.
- Learn from Your Mistakes – If you don’t have a winning offer, and make mistakes in your home-buying venture, be sure to analyze what you did wrong to correct it in the future.
It can really be unnerving (and exciting) to buy real estate. It’s a big decision. LAWSON & CO has brought buyers and home and property sellers together successfully for a long, long time. We have seen many, many dreams become reality for families in Central Indiana. With all our years of experience, you can be assured you are in good hands!
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