Buying a home can seem daunting; saving money, finding your dream home, and discerning between your needs vs. wants is a tall order. Now let’s face it: your city is a seller’s market, which means there’s a high demand for homes in an area with a low inventory of homes available.
We had our panel of Lend Friend pros get together to come up with their top pieces of advice for circumnavigating a seller’s market.
1. Do Independent Research - Survey the area you want to live in, find out what you need in a home vs what you want, and use free sites like HomeFacts.com and Redfin.com, as they provide great information on local schools, crime, home values, transportation and neighborhood demographics.
2. Get Preapproved - A great loan officer will educate you on what to expect and how the home loan process works to ensure you don’t have to go smash your piggy bank to make homeownership a reality. Getting pre-approved early let’s all parties involved know you are a serious shopper and enables you to make an offer on the spot when the time is right! Your preapproval also allows you to handle any hiccups in your application ahead of time.
3. Find Top Notch Representation – A realtor with ample experience can and will save you thousands of dollars. Your realtor is your greatest asset when it comes down to the hardest of negotiations. Purchasing a home could be the largest financial transaction of many peoples’ lives; it’s important to have someone you’re confident in to go to bat for you.
4. Make A Fair Offer – You’ve done your research, been pre-approved, found an all-star realtor, and the home you’ve always imagined is in your sights. You’re tempted to start negotiations with a low-ball offer. Don’t do it. A sellers’ market doesn’t often call for lowball offers being considered; making a quick and honest offer will ensure your preparation doesn’t go to waste. PRO TIP: A gesture as simple as a hand-written letter communicating how important the home is to you can be the difference maker on your formal offer.
A sellers’ market may not be the ideal time to buy but timing is rarely, if ever, perfect. Do your research, find a good lender early on and pair with a seasoned realtor. Your life will be completely stress free when navigating through the home shopping process!