Purchasing real estate in a seller’s market can be quite daunting and competitive. A seller’s market is defined as when demand exceeds supply, and this outpaces the price with high competition among buyers. But with the right tools, it is still easy to secure your ideal property. Here are some professional tips to help navigate the process that features insights from Dov Hertz, a real estate developer.
Lodge an application for mortgage pre-approval
One of the most important things you want to do in a seller’s market is get preapproved for a mortgage. That not only shows your seriousness as a buyer but also puts you a step ahead of other bidders who haven’t arranged their financing yet. Being pre-approved also gives you an idea of your budget, allowing you to start looking at homes within that price range, saving time and frustration.
Work with an Experienced Real Estate Agent
It would be working with an educated real estate agent, more especially a local, that would really be helpful. The experienced agent knows the market situation and the upward trend of the pricing and how to make the correct bid. An experienced agent also has a network that would provide him with early notice of listings, keeping him ahead of the rest. According to Dov Hertz, a skilled agent can make all the difference in a competitive market.
Be Prepared to Act Immediately
In this fast-moving market, hesitation can mean losing your home. Once you find the right property, you need to be quick and prepared with all your paperwork ready to make an offer at any moment. Speed is often the benefit of making a competitive offer in such instances.
Build the Offer Strong
Dov Hertz also says that “In a seller’s market, it’s almost a given to make proper offers. You don’t necessarily want to bid above list price, but, of course, your offer is competitive.” Think about increasing earnest money or being more flexible with the closing timetable. If you have latitude in your budget, you might even make an above-asking-price offer that bolsters your position.
Minimize Contingencies
While contingencies are important protections for buyers, too many can weaken your offer. In a competitive market, it is wise to limit the number of contingencies as much as possible to make your offer as attractive as possible. Emphasize the most vital ones, such as financing or inspection, and try not to waive less consequential conditions if you feel okay about the risks.
Please also listen to this podcast: The FORT Podcast: Dov Hertz on Mastering NYC Real Estate
