How To Buy A Home In An Extreme Seller’s Market?

The housing market in 2020 was recognized as an extreme seller’s market. Within a very short span of few months, the home prices bounced between peak highs and lows of the decade. While moving ahead into 2021, the industry players and economists projected that the real estate market would keep on rising by almost 5.7% this year, and it will still be termed as an extreme seller’s market.

A seller’s market can be defined as a specific market condition where people interested in buying homes are more as compared to available houses for sale. In case if you are planning to buy a home in the extreme seller’s market, you should expect higher prices with increased competition. On one side, you will struggle to find a fair price deal; at the same time, you will be forced to make quick decisions. Therefore, it is necessary to follow some trusted tips and tricks to buy a home in the extreme seller’s market.

Here we have listed few tips to help you make a quick decision about securing the right home buying deal:

Expand your search

There is no doubt to say that housing prices usually stay higher in hot neighborhoods. Therefore, experts recommend moving a little farther from such popular residential areas. In this way, you will be able to get better pricing offers per square footage while ensuring easy access to amenities at fewer expenses. It is not good to follow a hype; rather, you should prioritize your needs and preferences along with your budget range.

Present customized offer to the seller

Home buying is not just about the price. You can tailor your offer based on the holistic needs of the seller, and this is generally the best strategy to get your offer accepted. In some cases, it will be all about price, but for others, you can consider few other relevant factors as well. The chances are that you can meet sellers' demands in terms of conveniences and contingencies. You can offer them an easier move to the next home to close the deal fast.

Waive off mortgage contingency

The mortgage contingency contract allows buyers to back out if the loan is not approved by the approached financial agency. Although it protects buyers to a great extent, it adds uncertainty to the seller’s side. When you remove contingencies from your home buying offer, it gets easier to please the seller fast. When you are not sure about receiving approval for your mortgage, it is better to come up with a backup plan such as a high down payment or co-signer.

Consider all-cash offers

There are an extensive range of investors who clearly state that we buy your house at the cash price. You can also follow the same strategy. It is already proven that cash offers are the best choice to close the deal faster while eliminating the risk with mortgage funding. Moreover, cash offers help buyers get their dream home with higher negotiation power. As you are going to help the seller to save thousands of dollars in the transaction, they would definitely find this option more attractive.

If you are still finding it difficult to get a home, you can consider renting the property until you have enough money to buy it. It will not just provide you enough time to save money for buying a new home; you will also get a better feel about the property and will be able to visualize the neighborhood closely. When you move ahead with this strategy in the seller’s market, you can definitely lock the deal at a better price.