Many buyers may have heard the phrases “seller’s market” or “competitive market,” but what do these terms mean? A competitive market, when used to mean a seller’s market, is when there are more buyers looking to purchase a Nolensville TN home than there are homes for sale, creating competition between buyers. Buying a home in a seller’s market is different than other markets because buyers have to move at a much faster pace than they would have to otherwise. Here are some tips all buyers can use to help their odds of finding and purchasing the home they want despite the competition.
Don’t Be Too Picky
Every buyer has a list of thing they want in a new home, whether it’s something like granite countertops, wood floors, or even a pool. However, if buyers get hung up on these sorts of things or will only even consider homes that check off every item on their list, they likely won’t be able to find a home to purchase. Not only are there fewer homes on the market in a seller’s market, but they are sold far faster than usual because of the demand. If a buyer gets stuck on the aesthetic or supplemental parts of a home, they likely won’t be able to find one that meets all their wants and still be able to win it away from another buyer.
Don’t Wait To Offer
Because a seller’s market moves so quickly, buyers have extremely limited time to weigh their options and think about what they want to do. Once a buyer finds a home that they can imagine themselves living comfortably in that meets their most important needs, they should immediately move on to deciding if they want to put in an offer and act accordingly. The easiest way buyers miss out on a home they want is by waiting too long to come to a decision, so be sure to put in an offer as soon as possible when the competition is steep.
Be Ready For a Bidding War
If the market is hot enough, there’s a good chance that buyers will be pulled into a bidding war to win the chance to buy the home. If this is the case, there are a few things buyers can do to help pull ahead of the competition:
- Have a large cash offer.
- Use an escalator clause.
- Be preapproved for a loan.
- Use minimal contingencies.
- Be flexible on closing.
Alone, any of these can help to attract a seller’s attention because they sweeten the deal for the seller. But when combined, they can be powerful tools that can help win a bidding war in a competitive market. Buyers can use as many of these as they want to keep a seller’s attention, and they can also consult their real estate agent for advice on which ones are the most effective.
Work With an Agent
Having a real estate agent is one of the best things a home buyer can do to help themselves. Agents know their markets inside and out and have the resources available to locate potential homes for buyers far before the buyer would see them by other means. On top of this, hiring a real estate agent costs buyers nothing because their commission comes out of the money the seller makes on their home, so there’s no reason not to hire an agent.
Buying a home in a competitive market can be tricky, but it’s definitely possible. By keeping these tips in mind, buyers can help themselves stay a step ahead of the competition and get closer to purchasing a new home.