A seller's market is when the demand for homes outstrips the supply. This can lead to increased competition for homes in choice neighborhoods and an increase in selling prices. In fact, those areas and neighborhoods that are highly-sought could see homes go under contract within just a few days instead of months or weeks. In order to get the home you want, you'll need to be prepared to make quick decisions.
1. Get preapproval
Even when a seller has the advantage during this type of market, there is still a certain level of uncertainty. In order to balance that out, make sure you're preapproved for a loan that's enough to cover the price of the home. Given that level of certainty could sway a seller in your favor if they have multiple offers.
2. Be flexible about the neighborhood
Homes that are located in the hottest neighborhoods will have the highest selling prices. Don't overlook those areas that are a bit further out or that are still up-and-coming when doing your house search.
By doing so, you'll usually find the competition for homes to be less feverish. In addition, your home buying dollars will purchase more square footage and amenities.
3. Tap into the seller's wants
It's easy to assume that the seller is only focused on the price they can get for their home. Of course, that's an important part of the process, but for many, it's only one aspect.
Customizing your purchase strategy to meet the seller's needs. Opting for an earlier closing or forgoing the mortgage contingency in the event your mortgage isn't approved could make your offer more attractive -- even against those that are higher.
4. Offer cash
Having cash gives you a great deal of power to negotiate the purchase of a home. It's appealing to seller because the risk of the mortgage not being funded is eliminated, and cash offers usually close more quickly.
A seller's market means that you, as a buyer, need to be more creative in order to get your offer seen and accepted.
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