Buyers: How to Approach a Seller’s Market

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I want to post some information to help any potential buyers out there if you’re looking for that new home during a seller’s market.  If you're a buyer, you might notice a lack of homes to choose from in our area.  Because of this, sellers are able to sell their homes for listing price or even above in some cases and they are flying off the market fast!

So, what can a buyer do in a seller's market to get the home they want?

The #1 thing you can do - be fully prepared.  That means, before you even start looking at homes, you need to get pre-approved by a lender and find a good agent.

Secondly, be prepared to act fast.  If you find a home you like, in a location you like, and in your price range, make the offer.  I don't say that to be pushy, I say that because if you decide to "think it over" for a couple days, it very well could be gone and you'll miss out.  That is simply the type of market you're competing in right now.

One other bit of advice, try to avoid contingencies if possible.  Sometimes buyers have to sell their own home first, meaning any offer they make is contingent upon that.  Sellers are much more likely to accept an offer with no contingency clause.

Finally, let's talk about negotiating and what to expect when you're ready to make that offer. Because you are the buyer in a seller's market, you little leverage to offer much below asking price.  Now, I'm not saying you should just lay over and make a full price offer every time.  Your agent should be evaluating comparable homes and determining how they are competitively valued against the home you want.  By doing this, we make sure you're not over-paying and you're getting the home for a fair market value.

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Overall, stay patient, stay positive, and enjoy the home buying process!

Joe Bruns

McMichael Realty, 369 South Summit Drive, Holts Summit, MO, 65043