Looking to Buy?
Buying in a Seller’s Market is a Good Thing. No, Really. Ask Trump
Real estate mogul and Presidential Candidate Donald Trump is probably the most well-known negotiator there is. At least that’s what he’ll tell you. No matter the market, there’s always a deal to be made. But does buying in a seller’s market ever make sense? Buyers don’t have the luxury of determining when it’s a buyer’s or a seller’s market. It just is. But in many places across the country where inventory is shrinking and if interest rates got even lower the bank would pay you to take out a loan, it’s a seller’s market. But that doesn’t mean you have to sit on the sidelines or pay more than you want. Here are some insider tips to take when shopping for a home with the sellers sitting in the driver’s seat.
1: You REALLY Want Their House. Have you heard of this one before? Probably not. When making an offer, write down on a little note card why you really, really want their house. Make it personal. Remember, you’re competing with others and any little nuance can help.
2: It’s In the Bank. Let the sellers know that not only have you applied for a mortgage but you’re already preapproved. Your preapproval letter should clearly state that your credit, income and assets have been verified and you can close within days.
3: On It Like a Bonnet. Your real estate agent is notified when a home is first listed and agents who list those homes know it’s better to place a new listing during the week and not on the weekend. When a home is first listed, get there right away. Don’t wait until the weekend like most shoppers do.
4: Seller Wiggle Room. Don’t forget the sellers are moving out and moving in somewhere else, just like you. It’s a hectic time. And while sellers like to know you’re preapproved and can close quickly, let the sellers know if they need more time to move out, you’re willing to let them stay a little bit longer after the closing. Your agent can craft a lease-back agreement for you.
5: Earnest Money Bonus. Earnest money deposits follow the norm in each market, say maybe 1.0% of the sales price. Whatever your agent suggests, think about doubling or even tripling that amount. Trust me, it will open the seller’s eyes a bit wider.