Tips Buyers Need to Know in a Seller’s Market
When selling and buying homes, there are three types of real estate markets: buyer’s market, seller’s market and a neutral market. When experiencing a seller’s market, there is a higher demand for homes than the supply has to offer. With not enough homes for sale, buyers tend to compete for the same available homes – which can drive prices up.
Here are some tips home buyers need to know when buying a home in a seller’s market:
Get Mortgage Pre-Approval
You need to know how much home you can afford in order to make an offer on a home, especially in a seller’s market. It is a good idea to become pre-qualified for a mortgage loan to figure out that budget. Once pre-qualified, you can provide a pre-approval letter when making an offer which lets the seller know you are a serious buyer.
Work with a Real Estate Agent
Working with a real estate agent is vital in a seller’s market. Homes that come onto market may sell in a matter of hours. Your real estate agent will be in tune with the availability of new homes for sale so you can act quickly. If there are no homes on the market in the area you desire to live, your agent can reach out to that area’s homeowners to see if they would be willing to sell.
Do Your Research
Knowing where you want to live and what your housing requirements are is important in a seller’s market. Communicate to your agent what home features are a must and those you would like to have but could do without. In this type of market, finding a home with everything on your list probably will not happen. It is best to look for potential in a home to make it work for you. But, do not buy a home you do not love. Remember, you will be living there for at least five years if not longer.
Ready, Set, Go
You may need to act fast with your offer on a home in a seller’s market. A low-ball offer will not work in this type of market. Be prepared to offer full price or over-the-asking price.
When you make an offer, it may work in your favor to find out why the seller is moving so you can figure out what kind of closing date to offer. Making things easier for the seller could work to your advantage.
There are usually a few contingencies (such as the home inspection) in a purchase contract. In a seller’s market, the fewer contingencies, the more attractive your contract will look to the seller.
A seller can accept only one offer. If your offer is rejected, remember the home seller wants to make the most money with the least inconvenience. In addition to price, the seller may have accepted another offer that offered better terms (larger cash up front, fewer or no contingencies, already pre-approved for a mortgage, etc…)
If your offer is not accepted, keep your spirits up. There will be another home that meets your needs and soon become your dream home.
Home Sales Rise Ten Percent for January in Southeastern Indiana
Home sales started off the year with a strong start in Southeastern Indiana. Sales rose 10.2% in January and the average sale price rose by 4%.
January 2017 vs January 2016
- 10.2% Increase in home sales (54 homes vs 49 homes)
- 4% Increase in average sale price ($119,500 vs $114,900)
- 7.1% Increase in median sale price ($131,781 vs $123,080)
- 18.0% Increase in sales volume ($7,116,200 vs $6,030,905)
It’s a great time to buy or sell a home. Mortgage interest rates are still low and home values are rising. Look at homes for sale here.
Statstics courtesy of Southeaster Indiana Home Sales Report, January 2017, Rick McMillin, Vice President/Sales Manager of Sibcy Cline Harrison
Sibcy Cline Vandalia Starts the Year with Updated Interiors
Sibcy Cline Vandalia – Sibcy Cline’s most-northern office – received some updates to its interior space. The office now features new carpeting, painted walls, artwork, conference furniture as well as a new kitchen.
To celebrate these improvements, Mike Pierson, Vice President/Sales Manager of Sibcy Cline Vandalia invited several Vandalia city officials to attend an office meeting. Mayor Arlene Setzer, City Manager Jon Crusey and his assistant, Julie Trick presented a “State of the City” report to Vandalia Sibcy Cline agents while they also admired the office’s new look.
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Carrie McIntosh-Owens of Sibcy Cline Realtors is President of the Southern Ohio Association of Realtors for 2017
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