How to Buy a Home in Today's Seller's Market

It’s not easy being a home buyer in today’s market. The shortage of homes on the market combined with increased buyer demand has created a buying frenzy in the South Sound as buyers fight for the limited supply of homes available. Buying a home is a big decision, and it’s easy to get discouraged by offer wars. While there are no guarantees that the offer we place will be the winner, I have plenty of strategies that can help make your offer shine (without having to pay an exorbitant amount).  Here are a few ways I’m helping my buyers find a home in today’s red hot seller’s market:

1. Look for a Possible Fixer-Upper. Move-in ready homes are flying off the market within days, going oftentimes 10-20% above the listing price. With interest rates so low, it makes sense that these completely remodeled homes are being sold for so much, as the buyers can essentially finance the remodel work. If you don’t mind a home that needs some repairs or improvements, you will have a much easier time finding a fixer-upper than a pristinely updated home. I have done my fair share of remodeling and updating my own homes, and I'm happy to give my insights and opinions on potential homes you are looking at.

   
   

   
   

2. Look Past Clutter and Poor Photos. Many people fall in love with a home online through the photos. If a home is poorly decorated, cluttered, or the photos are dimly lit and blurry, it can deter many buyers from even wanting to see the home in person. Sometimes bad photos and clutter are a blessing in disguise. I’ve had several buyers who scheduled a showing on a home “just to be sure,” and they ended up falling in love with it at the showing. Many homes look better in-person compared to the photos, so don’t write-off a home just because of poor photos. 

   
   

3. Try to Avoid a Contingent Offer. I would love to tell you that I have a superpower that can win you your dream home when your offer is contingent on the sale of your current house. In today’s market, it’s rare that a seller accepts a contingent offer, as it poses an additional risk for the deal falling through. There are definitely ways we can navigate this, though (without leaving you homeless). This usually includes listing your current home and asking for a specific rent-back period from whoever buys your home. This would give you time to find your next house without having to go contingent. 

   
   

4. Keep Your Eye on “Back on Market” Properties. When a home first comes on the market, it attracts a lot of attention, as it’s fresh and new. The seller may accept an offer, and sometimes the buyer backs out. This is usually due to something being found on the inspection report, but could be for a variety of reasons like a failure to secure financing, or even because they didn’t like the school district. Many buyers automatically write these homes off, as they think that the house must have a major issue. This is not always the case, so feel free to reach out to me, and I can try to find out the reason the previous buyer backed out. 

   
   

5. Don’t Overlook Homes that Have Been on the Market a While. It’s easy to assume that a home that has sat on the market for a while must either be outrageously overpriced or have a major flaw. This is sometimes the case, but not always. Sometimes the sellers initially overpriced the home, and have since dropped the price. The more time the home sits on the market, the less allure it has to other buyers. This can sometimes create the perfect opportunity to put an offer in. 

   
   

6. Increase Your Earnest Money. Earnest money is basically your initial down deposit that you pay the title company right after your offer is accepted. Earnest money shows that you have skin in the game and are not just toying around with the idea of buying a house. Increasing this amount shows the sellers that you are serious about purchasing their home. The catch: you have to be willing to lose this money if you back out of the deal for a reason outside of the contingencies that were in your offer. 

   
   

7. Get a Pre-Inspection. This is the favorite weapon in my arsenal to help my buyers place a winning offer. A pre-inspection is when you get a home inspection done before even placing an offer, so that your offer can waive the inspection contingency. It sounds crazy to spend $150-400 to have an inspection done before even knowing if your offer got accepted, but it’s sometimes the best way to get your dream home. Sellers love a waived inspection offer, as it speeds up the process and ensures that the sellers do not need to complete additional repairs. 

   
   

8. Be Patient. It’s easier said than done, but home inventory will eventually pick up. The market will still be competitive and prices may still continue to rise, even as inventory increases, but I am hoping that as more homes hit the market, it will bring at least a hint of relief to my buyers who are competing against several other offers. As the risk of infection diminishes, more sellers will feel comfortable listing their home on the market. Many sellers need to have repairs done on their homes before listing as well, and with contractors booked out months in advance now, this has delayed many sellers putting their homes on the market. I am expecting that more homes will pop up on the market in late summer and early fall. 

Ready to start your search for your next home? Click here to start searching online, and send me an email or give me a call when you are ready to schedule a showing. Can’t wait to walk you through this fun journey!