When dealing with a seller’s market, there are ways that both buyers and sellers can maximize their chances of a successful sale.
While the scales might seem tipped in favor of sellers at such times, with the proper preparation, everyone can walk away from a sale happy.
Buyers working in a sellers’ market might experience a sense of frustration and powerlessness. Rather than giving up on buying a home, these buyers should work to control as much of the transaction as possible. This means submitting a strong offer that is very likely to get accepted.
The best way to ensure an offer will be accepted is to come to the table fully prepared. A seller’’ market is not the time to waffle. Rather, successful buyers will be the ones who know exactly what they want in a home, and who act quickly when they find it.
Houses will sell quickly in a sellers’ market, so prospective buyers should visit new homes as soon as they are listed. When they find something they like, buyers should submit an attractive offer as early as possible. Anything buyers can do ahead of time to streamline that process will increase their odds of success. Buyers are well-advised to line up their loans and financing as much as possible in advance. Sellers will benefit from quick sales, so offers that include lengthy financing delays will be far less attractive. Other delays and contingencies (for example inspection contingencies) will decrease an offer’s likelihood of being accepted. Aggressive buyers who arrange to have homes inspected prior to submitting an offer might be able to submit a contingency-free offer that would be more likely to catch a seller’s eye. If an inspection must take place after submitting the offer, arrange to do so as quickly as possible to limit delays.
Sellers also need to be prepared in order to get the most out of a sale. While they might feel that they can sit back and deliberate, in fact it is often the first offer that is the best one. When a buyer submits a strong offer with good financing, few delays, and limited contingencies, sellers need to act quickly because passing on a strong offer early on, might in fact cost sellers in the long run. A higher offer with more risk, might put the sellers in a contract that will ultimately fall through, making their property seem undesirable. Like the buyers, sellers should know what they want before entering the market, and act on it when they see it.