Top 5 tips for homebuyers in a seller’s market
With all of the attention that Colorado real estate has been getting lately, it can be intimidating for homebuyers hoping to get the best deal possible on their next home purchase. However, with these five strategies, you can successfully navigate the current seller’s market and still end up with the home you want at the price you’re willing to pay.
1) Get Pre-approved
Before you start house hunting, do your homework and get pre-approved for a mortgage. This will allow you to know how much house you can afford before even starting your search. Plus, when you are pre-approved, it shows good faith on your part—as well as real proof that you’re actually serious about buying! It also gives sellers peace of mind that they won’t be dealing with any unknowns when they sell their home to you. Not all lenders are created equal, I have included a list of recommendations on my Guide to Buying a Home
2) Be flexible on your closing date
If you’re looking to buy in a hot real estate market, like Colorado, try to keep an open mind about how long it might take you to find your dream house. You may want to negotiate with sellers on your desired closing date as well as on price. Many sellers are flexible when they have several offers and are eager to make a deal, but buyers who can’t close until December may have fewer offers than those who can close in September.
3) Work with an agent who an experienced negotiator
This is crucial. When you’re trying to purchase a home, especially in a seller’s market like we are experiencing here in Colorado, you need a trustworthy, experienced negotiator that understands your position and knows had to put you in the lead position. Hiring a skilled negotiator can easily mean the difference between landing that house or losing it due to small mistakes or oversights during the process. Negotiating is so much more than just the purchase price—it’s about fighting for what you want and getting what you need.
4) Know the area you want to buy in very well
The housing market can be fast and furious, so it’s important to know your local area before you start looking. If you don’t, you could end up paying over-the-top prices when sellers are putting their homes on sale to capitalize on buyer interest. Knowing what other properties have recently sold or asking around for a property’s past price history will help you keep things realistic.
5) Keep calm and carry on
In recent years, Colorado has become more of a seller’s market than ever before. Buyers can be up against fierce competition and some sellers who may be looking to profit from your eagerness to purchase. But while there are plenty of good reasons to be concerned about an overheated housing market, it’s also true that one of those reasons shouldn’t be you. Buying real estate should be a rewarding experience. Don’t let the market or your real estate agent create an intimidating and stressful experience; by keeping your wits about you and remaining calm throughout negotiations, you can avoid making mistakes or letting your fears get out of hand.
RCC, RRS, REALTOR®
Fine Homes & Luxury Properties
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(RCC) Residential Construction Certified
(RRS) Residential Remodeling Specialist
RE/MAX Masters Millennium
#1 Single RE/MAX Office in the U.S. 2013-2019 & Worldwide-2017