What does a seller’s market mean?
The Real Deal
You and your Realtor have just met to talk about what you are looking for in your dream home and the next step is to begin the home search process. After viewing the first house, the Realtor asks you, ‘Do you want to make an offer on this home?’ In your mind, you may be thinking, ‘Wait, on HGTV, they look at three houses before they decide; and one house seems inadequate.’
Welcome to one of the nuances of a seller’s market. There can be even more pressure on the buyer in a seller’s market to submit an impressive bid. So how can you make sure that the offer you submit is the one that is accepted?
In a seller’s market, home prices are a bit higher and inventory is lower. This means you are more likely to compete with multiple buyers that are interested in the same home. If you are looking to buy a home in the Greater Nashville area, you may compete with multiple offers with others to get that dream home. In a competitive market like this, buyers need every advantage they can get, and working with a Realtor to make the best purchase offer is a smart move. And, believe it or not, the bid with the highest price is not always the one that wins.
Of course, sellers want to get the best price for their home, but that isn’t always the deciding factor. Eliminating or reducing the number of contingencies with your bid can also help make your offer more substantial, but talk with a Realtor about any liabilities from this choice.
However, that doesn’t mean that you should submit a below-market offer with no contingencies. When you are going up against more than one potential buyer, it’s the time to put your best foot forward. This might be your one chance to convince the owner to sell their home to you, so it’s all the more important to submit your best possible purchase offer.
If you can pay cash for your home, the seller may feel that means a quick, streamlined purchase, increasing your chances of winning the bid. However, for most people, a cash offer isn’t a possibility and you’ll need to qualify for some variety of mortgage financing. If this is your situation, getting preapproved for a mortgage before you begin the search process is a winning formula. With loan pre-approval, you’ll be able to make a substantial commitment to buy, and your offer will be more appealing to the seller.
And of course, the most important thing you can do to give yourself an advantage is to hire a Realtor. More than an app, Realtors have real insights and unparalleled knowledge of your local market and can help you navigate the complicated home buying process.
Our team of seasoned agents are armed with a market knowledge and skillful eye to help highlight positives & negatives during a showing so you can be sure that Team Kipp has got your back. With over 45 years combined experience we understand price negotiation and will advise you on how to form the offer to help you get the best deal on your new home. Our proven success in Real Estate in Middle TN means we are proactive in our approach to getting you through the process as quickly and smoothly as possible. When you’re ready to take that next step toward homeownership, we’re the buyer’s agents that will stand by your side. Let our Team of experts help you find Real Estate success. Call us at 615-549-7967 or email firstname.lastname@example.org to get started today.