There are benefits and drawbacks to every market, but the low inventory of the 2021 seller’s market is making everyone feel the pinch. While individual sellers may be giddy to get competing offers and bidding wars, they are often losing out if the financing lenders come back with an appraisal that won’t hold up to the price. Buyers are concerned that if they even find a house, it’ll be too little house for how much they can pay.
So if you have to participate somehow in this market, what should you be doing? Homelight’s best real estate agents have weighed in on the likely trends for the coming season of home sales, and here are some tips for how you can handle your unique situation.
If You’ve Got Somewhere to Go, Put Your Best Seller’s Foot Forward
Many people actually have the option to avoid buying and selling at the same time. Maybe you have family with whom you can live till the market cools, or you have a rental property that you can move into in order to wait it out. Regardless, if this is a time when you can sell without having to buy immediately, make the most of the market! And don’t be tempted to lower your own investment in the sales process. Good staging, savvy marketing, and a great real estate agent can really make the difference and get you a high offer, often in cash or with great contingency waivers.
Trying to Avoid a High Mortgage? Now’s the Time to Hunker Down
If, however, your own moving option is to buy in this market, consider all your other options before you buy. Because the same factors that make it great for sellers put buyers in a position where they will get less for their money. There’s nothing wrong with getting pre-qualified and keeping an eye out, since the draw of low interest rate mortgages is strong, but if you can’t find an affordable gem in this competitive marketplace, now’s a great time to wait it out.
Need to Place an Offer? Prioritize What’s Right For You
So you’ve decided to buy during a seller’s market. That’s okay, and possibly still thebest call – after all, some folks have to move for compelling, time-sensitive reasons. When you’re considering budget, make your plan ahead of time: how far over asking are you willing to go? What is your true top limit for a house mortgage? Are there contingencies you don’t mind waiving? It’s good to have these decisions made before a house comes to market these days, since once you find the house you want, you’ll often need to have your offer in within 24 hours to be considered for the more competitive homes.
As you can see, there are ways to make the most of a seller’s market even when you may feel like, initially, you’re at a disadvantage. You can turn many of the circumstances of a seller’s market to your advantage when you know the situation and make a plan.
