Be A Competitive Buyer In A Sellers Market

Dated: 06/28/2016

Views: 296

So you want to by a house, and everyone keeps telling you it's a seller's market.  But, what does that really mean?  It means  if you want to buy a home you'll want to prepare yourself to pounce on that perfect property!   A Seller's Market is when there are more people buying than selling.  Often times, this creates situations where houses that do go on the market DO NOT last long - as in only DAYS before they sell, especially the good ones.  

Western Wisconsin Real Estate has been consistently climbing since 2008, and 2016 has been busy! Homes are being sold like crazy with buyers swooping in from every angle!  So what does this mean for the buyers?  It means buyers need to put their house-buying pants on and prepare themselves to grab up their desired property before someone else does.  

                                                                                   

Buyers want to prepare in order to be competitive, but there is a difference between being competitive and rushing into a deal.  Competitive is prepared, rushing is....well....not prepared.

So let's talk about how to become a COMPETITIVE, PREPARED buyer in any market.


1. Get your numbers in order.

Talk to a lender about loan options available to you.  They won't pull your credit until you give them permission, so just talk to them and get educated about your options. Credit scores are important, but you don't have to have a perfect credit score to obtain pre-approval for a mortgage loan.  USDA, FHA, Conventional, Downpayment Assistance Programs, and Section 184 are all examples of loans that may be available to you.  Google them, read about them, talk to a lender about which ones you may qualify for, and have that pre-approval ready to go when you start looking.

2. Figure out what you want in a property.

Figure out what kind of house you want with the budget you have been pre-approved for.  Go online and surf the internet and figure out how many bedrooms you want, bathrooms, a basement, one-story or two.  Do you want to commute, do you want a pool, an acre of woods....just get an idea of what you like and don't like.

3. Work with a Licensed Real Estate Agent.

View the Real Estate agent code of ethics, to familiarize yourself with their dedication to clients.  Real Estate Agents want to help you get what you want, that's how they make money.  They want to develop a trusting relationship with their clients, so they can get more business.  They probably have access to software you don't (MLS), people you don't, knowledge you don't, and experience/ negotiation skills you may not possess. So they will be a great asset to you in many ways!  

If you have a house you need to sell before you buy - speak with your real estate agent about getting your house on the market.  Buying a house on a contingency to sell your own is generally not attractive to sellers in a hot market, especially when they receive other offers with no contingencies.

They will need you to sign an Agency Disclosure/Representation Agreement whether you are a customer or a client.

The difference between a customer and client are simply the obligations of the agent.  

A customer/agent relationship is when the agent provides all the necessary information, but is not obligated to work in the best interest of the customer because the agent does not represent the customer.

A client/agent relationship is an established agency relationship where the client signs an agreement with the agent allowing them to act as their representative.  The agent works in their client's best interest in a client/agent relationship. 


If you want to buy a house - follow those steps.  It's easier on everyone if you are pre-approved before seeking an agent, and you can always change agents even if you sign an agency disclosure form.  If you can't get approved, find out what you need to do to try and get approved later.  Buying properties is fun, home ownership is rewarding, and there are plenty of people out there who want to help you become a competitive and prepared buyer!


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Sarah Lightfoot

Walt Disney - "First, Think. Second, Believe. Third, Dream. And Finally, Dare." As a motivated Real Estate Agent serving home seekers and sellers, I am a trustworthy source of support; keeping my ....

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