A seller’s market is one in which inventory is low and demand is high, resulting in homes selling quickly and bidding wars becoming prevalent. Right now, it describes most markets across the country. It is, of course, beneficial to sellers, but it poses a number of difficulties for purchasers. However, despite the increased difficulty, it is still feasible to find a home that suits your demands in current market. We’ve put up a list of 5 suggestions for buying a Irvine house in a seller’s market to assist you.
1. Start Early and Do Some Research
It’s a good idea to obtain a sense of the exact nature of the seller’s market in the area where you wish to buy by starting early. It only takes a little legwork and research.
“Before you get too serious, have a peek at what’s available. On the weekend, take a walk around potential neighborhoods and check your preferred real estate website for new listings. Keep track of how long homes are on the market until a contract is signed. (It won’t take long in a particularly hot market.) You might also want to check at recently sold listings online to get an idea of how much homes are selling for in comparison to their listing pricing.”
The goal is to obtain a sense of how hot the local market is without feeling obligated to make an offer. It will also allow you to learn more about the kind of homes and neighborhoods that suit (or don’t meet) your requirements. When you go into a transaction prepared and knowing what to expect, you will simply be in a better position.
During this preliminary stage, your Irvine agent might also be of great service. Simply contact 714-844-0605 to learn more.
2. Be Prepared to Compromise
You undoubtedly desire a home that checks all of your must-have boxes as well as as many of your wish-list boxes as possible. However, in a Irvine seller’s market, you must be willing to make some concessions.
“[h]olding out for ‘the one’ in a hot market may not be an option,” according to industry experts. It could be better to approach home shopping by considering how to make a ‘good enough home’ work.”
In a seller’s market, you simply have more options if you can be flexible with your goals and expectations. So think hard about what is most important to you – what you must have and what you can live without. Maybe you don’t need that third bedroom to be converted into a home office after all.
3. Get Pre-Approved and Have Proof of Funds
Remember that in a seller’s market, homes sell quickly, and you’ll almost certainly be competing with other (perhaps many) purchasers. So have those paperwork ready to show that you’re a serious buyer, such as your pre-approval letter and evidence of finances for the down payment.
In a multiple-offer situation, timeliness and confirmation of ability to pay are frequently critical. After seeing a house, you may only have a day or two to make an offer. Getting pre-approved and having your pre-approval letter to indicate that you can secure the financing, as well as confirmation that you made the down payment, can help to speed up the process.
4. Make Your Offer More Attractive
Multiple offers are the usual in a hot seller’s market, as we’ve mentioned. As a result, you must take steps to make your offer more appealing than the others. Waiving or severely limiting contingencies is one way to go about it, but there are other options as well.
“Aside from eliminating contingencies, there are additional strategies to entice sellers to accept your offer. Introducing the prospect of a rent-back agreement or establishing a closing date that is beneficial to the sellers can be beneficial.”
You might want to include an escalation clause as well. “That means you’ll automatically outbid any offer by a set amount (say $1,000) up to a certain point….” It’s like playing poker with your cards face up on the table and an escalation clause… When sellers see your total willingness to pay, they may ask why you aren’t offering that amount in the first place.”
Be sure, then, before deploying any of these deal-sweetening tactics, to consult your Irvine agent at 714-844-0605.
5. Find a Good Local Agent
Buying a Irvine house in a seller’s market almost demands that you find and use a good local agent.
“In a hot market, having an excellent buyer’s agent is especially vital. You want someone who will notify you of new listings as soon as they become available, if not sooner. A smart agent will also know how to make your offer stand out… [I]n this market, there is no room for error.”
To avoid error and meet the challenges of buying a Irvine house in a seller’s market, contact us today at 714-844-0605.