How to purchase a home during a seller’s market

In today’s blog I'm going to be talking about a few things that you can do to help you purchase “The Home of Your Dreams” during a seller’s market

Guiding a Buyer through a Seller’s Market

Please note that during a seller’s market your odds of getting that “Home of Your Dreams” starts with making an aggressive offer. During a seller’s market you should go into it at or above market price. 

Cash offers

-The first thing I am going to recommend to help you during a seller’s market is, if you have the financial means, go with an “All Cash Offer”.

Having the ability to come to the table with an all cash offer gives you a really good upper hand during the bidding war part of a seller’s market. Most seller’s want the highest price with the least likelihood of the deal going south due to contingencies and financing stipulations or processes. Knowing that they don’t have to worry about anything holding up the closing of the home except an inspection and appraisal weighs favorably in a Seller’s Market. Any deal that involves a mortgage loan comes with risk. There are potential issues with the buyers qualifications, potential underwriting issues, and even appraisal issues. When a home sale falls through due to financing the seller has to put the house back on the market and pretty much start the process all over. 

Pre-approval 

-The second thing I would recommend is almost as good as a cash offer to an extent and that is getting a mortgage lender “pre-approval letter”. Please note there is a difference between a mortgage pre-qualification letter generated by a website and one generated from an actual mortgage lender that actually went over your finances.

How can you get a pre-approval letter?

There are numerous lenders out there that will work with you and offer a “pre-approval” mortgage loan based on some basic lending qualifications like:

-your credit history

-work history

-debt-to-income ratio, and ability to pay. 

Why is a pre-approval letter important?

Getting a pre-approval” allows you to first know what price range of home you can qualify for.

 A “pre-approval letter” will also give the seller’s peace of mind that like the “all cash offer” there is less likelihood of contingencies or financial means not being met. Pre-approvals usually indicate to sellers that the buyers would most likely be able to secure the funding needed to close on the home.

In my next blog I will discuss a few special techniques to use in a seller’s market. 

One of the keys to getting the “Home of Your Dream” during a seller’s market is working with an actual Real Estate Agent that can move fast and help you along with the process.  Speed is one of the key elements in purchasing a home in a seller’s market.  My next blog will give you some nice techniques that can really make the difference during a seller’s market

In the meantime, if you’re looking to sell your home click here to get a free instant home value

If you’re looking to buy a house, click here to search for available homes.