We’re hearing the term “sellers’ market” a lot these days. Certainly the DFW property market is “hot” with no signs of it cooling anytime soon. As long as there are more willing and able buyers than houses to buy – also known as inventory – a buyer is going to have to work harder to be successful.
In a sellers’ market
In any market, the old-style real estate rules don’t ever get thrown away. It may be a sellers’ market, but sellers still must put their best foot forward if they want to get top dollar and accomplish a favorable sale.
A sellers’ market is strong for the seller because you can attract several buyers at once. A star property will lead to “bidding wars” and “non-contingent offers” so this is not the time to slack off.
To make your home the star of the show, it needs to be well-priced and in tip-top condition and you’ll find yourself managing multiple offers. If you don’t get the pricing right – compared to similar homes – or your home doesn’t show well, you may find yourself losing out in the dollar stakes.
It’s a no-brainer; homes that show well with the right price tag will have buyers lining up at the door.
Multiple offers are music to a seller’s ear and all the seller has to do then is pick the best buyer at the start.
The best buyer is usually working with a local agent, they will have their loan ready to roll and they’ll make the top offer. This is the person who is knowledgeable about the local market and very often, they will be the first to view the property.
It’s a good idea to get a backup offer in writing when you accept your first choice. Things can and do occasionally go wrong for the greatest buyer and you don’t want to find your property back on the market.
A sellers’ market can be maddening for a committed buyer. Instead of being able to act, this is the time for patience. As a buyer, you must do your research, get financing lined up and then hurry up and wait for the right house to come up.
In this market you need time and motivation. Get a good agent on your team, watch the market like a hawk and move fast.
See something you like? Dive in with an offer, and make it a good one. If you can find out what’s important to the seller, you can tailor your offer to meet their needs.
Keep your mortgage professional in the loop well in advance. Have a good understanding of what they need from you and submit a comprehensive file. The more information you lender has from you the quicker the loan will be approved. Don’t find yourself up against another buyer who has prepared better
Aggressive tactics work best in a hot market. The eager buyer should see a good listing instantly, the moment it hits the market. If your dream home is listed on a Tuesday, view it by Wednesday. If you think you’ll wait until it’s on show, by then the property will probably be sold.
The first buyer in the door is nearly always the best buyer. These buyers show sellers they mean business by their quick response.
Make the deal as risk free for the seller as you can. If you are submitting an offer, make any contingencies and timeframes fast, Inspections and appraisals can be done within days of signing the contract – not weeks.
Because inspections form the biggest risk or doubt in the eyes of the seller, try to have the home inspected before you make the offer. The offer then won’t be contingent on inspections
Knowledge is power and being aware of what you will encounter is half the battle. Knowing what you will face, you can prepare accordingly and that’s what makes a buyer successful in a sellers’ market.