7 tips to buying a house in a seller's market

Yes, it’s crazy out there. I know it seems like all the good houses seem to be flying off the market. It leaves buyers scratching their heads and even wiping away tears. Buyers, know this: It is possible to successfully buy a home even when there are multiple offers, here are some tips:

 1. Financing matters. Before you start looking, make sure you have a pre-approval (not a pre-qualification) letter from a reputable lender. It’s your choice which lender you use, but here’s a tip: your lender’s reputation matters – a lot! If you have a pre-approval from a company no one’s heard of, your offer may not be taken seriously. Same goes for lenders who have a reputation for not closing on time. If you don’t have a lender, I know several who have reputations for getting buyers to the closing table on time!

 2. Keep it clean. I get that you may want to ask for a lot of extras with your offer. You may be thinking, “If I’m going to have to pay top dollar or over the list price, they can at least throw in the washer and dryer.” Here’s a tip, sellers are going to look for clean offers that don’t have a lot of wants in it. If the washer and dryer are not included, then it may not be a good idea to write that in your offer.

 3. Contingencies can hurt. The hard truth is that a contingency can hurt your offer. What’s a contingency? It’s when your offer says something like, this offer is contingent on the buyer’s house closing. A lot of people have to close on their current house in order to purchase a new house. If this is the case, then let’s talk about what your options. There are ways to avoid contingencies or present a contingency that is still attractive to sellers.

 4. Be creative. Maybe you can’t offer a lot over the asking price, but there may be other things you can do to make your offer more attractive (please note, I’m not talking about doing anything unethical or illegal here). Instead of asking for the typical property tax proration, you may be able to suggest that taxes not be prorated, which would mean you’ll begin paying taxes when you close. If this is totally confusing, I’m happy to explain more about how this works. It’s one of the reasons buyers need a good real estate agent. We know how to be creative, ask questions and write offers that are accepted, even in a seller’s market.

 5. Know your audience. Just because you think suggesting a closing in 45 days will be a plus for the seller, it may not be. I like to talk to the seller’s realtor in advance of writing an offer, so I can learn as much as possible about the sellers and what’s most important to them. It may be closing quickly, it may be giving the seller extra time to move out. You don’t know until you ask.

 6. Yes, a letter may work. I’ve seen heart-felt letters make a difference. I’ve seen letters that buyers have spent hours creating not make one iota of a difference. It really depends on the seller (see tip number 5). Letters seem to make the most difference when a seller has an emotional connection to the house, for example, it was their first home, and they want it to go to a first-time buyer. Now, keep in mind, a letter won’t make up for a bad offer. I will help you craft a good letter to go with your good offer, though!

 7. Time is of the essence. It says this right on the purchase agreement in the section about the deadline to respond to your offer. This doesn’t mean you should try to pressure a seller to respond in a short amount of time, even if you think your offer can’t be beat. What’s the appropriate amount of time? That depends. See tip No. 5, know your audience, and ask how much time they may need to respond.

 Have more questions about how to buy a house in a crazy, seller’s market? Let’s chat!

It is possible to buy a home during a seller’s market!