Essential information for buyers in a seller’s property market

CORMAC SHEEHY, MD, RE/MAX PROPERTY PARTNERS

The first thing buyers should know is that they are in a seller’s market.

A seller’s market exists when people who want to sell their homes have more negotiating power than prospective buyers. In a seller’s market, there are fewer homes for sale than buyers.

“Don’t Be Shocked to Pay More Than the Asking Price”

It’s crucial to sharpen your home-buying tools if you want to compete successfully. Here are the top buying strategies experts recommend.

Get your finances in order

With new requirements implemented during the lockdown by IPAV, it is compulsory that buyers provide proof of funds before a viewing can be scheduled on a property. This rule was greatly welcomed by all in the industry.

Having mortgage approval and providing proof of funds indicates to the estate agents that you have your finances in place and are a serious contender in purchasing property.

Look for Homes Under Your Budget

With the shortage of homes on the market at the moment there are often multiple disappointed underbidders.

A helpful tip for buyers - if you are serious about buying a home now, a good strategy is to search for homes below your budget. This way you have room to bid up without dipping into savings or going outside of your target price point.

Don’t Fall in Love With Just One House—But Don’t Give Up Either

Most experts advise against getting fixated on one house, as that can lead to major disappointment, or worse, bad financial decisions made out of desperation. However, that doesn’t necessarily mean you should run the other way at the first sign someone outbid you or came in with a tempting all-cash offer. Deals can fall through and be prepared to be a second chance in securing the property you missed out on.

Expand Your Search

The most sought-after locations come with the highest price tags. If you have your heart set on owning a home and living in a specific but out-of-budget area, you might have to choose between them.

Start by identifying what you like about your dream location. Are there local restaurants and businesses nearby? Are there green spaces? Is it near public transportation? Whatever features/amenities you value, try to find them in areas you might not have explored before.

Why should you choose a different location? Often people overlook beautiful locations with great schools just because they aren’t busy.

 

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