Everyone is talking about how right now is the best time to sell your home. And if you’re like most people, you’ve probably been considering it… but buying a new house once your home sells is super overwhelming in a seller’s market. Inventory in the Lynchburg area is at an all time low right now.
BUYER’S AGENT
The very best way to protect yourself as a buyer is to have a buyer’s agent to be your advocate & work on your behalf. Your realtor should not only be a good negotiator but have a good, solid understanding of the local market, and connections, which will only benefit you. Your agent will make sure that you don’t overpay for a home, but also have a strategic plan to find the home you’ve been dreaming of!
PRE-APPROVAL
In today’s market, a pre-approval is a bare minimum requirement to getting your offer accepted. Previously, you could get a pre-qualification to indicate to the seller’s that you would most likely be able to secure the funding needed to close. Now, you need to contact a lender to get pre-approved for a home loan before you even begin your search.
KNOW YOUR BUDGET
Beyond your pre-approval, know ahead of time what you feel comfortable with your monthly payment being. Sometimes, in the midst of the excitement of home searching and dreaming, you can get wrapped up in the emotions. Before you start looking at homes, have your budget worked out, so you know what you feel comfortable offering as your best and final offer.
Knowing that most homes are going at or above asking in the current market, you may want to look for homes that are under your max budget so you can bid up. Looking at homes in the very top of your budget doesn’t give you much leverage to win a contract without getting outbid by someone else.
BE PREPARED TO MOVE QUICKLY
Buying in a seller’s market means you have to be able to make a move quickly! Make sure you are fully prepared when a new home goes on the market to put in an offer if you love it! Now is not the market to go see a home two or three times before deciding if you like it enough to put in an offer.
ESCALATION CLAUSE
In an environment where the listing price is just a starting point, one option you have is adding an escalation clause to your offer. This is a clause that escalates your offer when another buyer makes a higher bid. This can help you get an edge above the competition, giving you a better chance at securing the property. You can choose the amount you’d like your offer to increase by, as well as the max that you’re willing to go. This is a great option to make your offer a bit more competitive.
DON’T GIVE UP
I know, it can be so frustrating to fall in love with a house and not end up winning the contract. Don’t give up- often times clients loose one house to just find the next one they like even more!
