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  • Mihaela Vacarescu

HOW TO BUY A HOME IN A SELLER'S MARKET

We all know now is a seller`s market, prices are high and real estate inventory is very low....but how can you buy your future home????????????????

Well, is not easy but with a versatile real estate agent you can do this.

First of all you will need to Get pre approved.

Secondarily - Don't be too choosy. Whit such a low inventory, you can not afford to wait for " perfect" home in a "perfect location". Plan in advance and write down with your agent what is really "necessary" for your family vs what it would be "ideal"


Consider new construction. You may start your search with an intention of buying an existing home. But you may find that new homes have better pricing or availability. You may have to weigh commute time if the new construction is farther away from your work or other activities.

Stay alert. In a buyer's market, you might get away with taking a leisurely approach to your home search. That's not going to work in a seller's market. Keep a constant eye on new listings and set up visits to houses you're interested in as quickly as possible. Be ready to make a quick decision so you can beat competing shoppers.

Forget the lowball tactics. In a seller's market, submitting an offer that's well below the asking price is probably going to be a waste of time. Competing buyers often end up bidding above the initial asking price. If you want to be in the game, your bid should be close to if not higher than what the seller's asking. Talk to your real estate agent about the best pricing strategy.

Establish price discipline. If competitive bidding breaks out, it's easy to get carried away. If that happens, you may find that you not only get the home but also years of strained budgets and financial stress, too. Before you start shopping, set a firm limit on how much you're willing — and able — to spend.

Put away your list of demands. Your relative lack of power in a seller's market doesn't just affect the question of price. It carries over to every other aspect of the deal, too. Think twice before attaching conditions to your offer, such as demands for changes to the home. Likewise, it may be a bad idea to insist on contingency clauses such as your purchase depends on selling your current home first. To the contrary, you should be prepared to accommodate the seller's needs, such as being flexible on the move-in date.

Consider waiting. If your situation allows it, you might consider postponing your home purchase until the market cools down. There are some drawbacks to doing this. First, it's hard to predict when a market will shift and, depending on the economy and other factors, it could be years until conditions improve.

Finally, don't get carried away with the pressure to buy, even in a seller's market. Remember that a home decision has a long-term impact on your financial future. It may be better to let a house go than make a poor decision that's expensive to change.

Source : USAA Home Learning Center

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