How to buy in a seller’s market

seller's market
How to buy in a Seller's Market.

Seller’s market?

Here in Kitchener-Waterloo we still have a seller’s market with home prices continuing to rise and inventory levels still well below historical averages. It has been like this so long that it is the new normal. It doesn’t mean that home sellers can get whatever price they want and sell in one day without conditions and it doesn’t mean that home buyers cannot successfully find and buy their dream home. A seller’s market simply means that the balance of power leans toward the seller. With that in mind, below are some tips that can help home buyers get the home they want.

Be financially ready

Before actively shopping for a home, buyers should talk to their lender and maybe a mortgage broker to get pre-approved for a mortgage. Mortgages are many and many are complicated. The online calculators are great, but lenders look at how long you’ve been employed, whether you are self employed, your credit history and how much debt you are already carrying. 

Don’t dawdle. Don’t linger.

In a seller’s market, homes sell fast. That means you shouldn’t wait till the weekend open house to view the place. Call your Realtor and schedule a showing as soon as possible. 

Once you’ve seen a place and if it is quite possibly the one then, “take it off the street”. Don’t think it over for a day or two procrastinating, put in an offer and tie it up so others cannot swoop in and buy it. 

Don’t let it be the one that got away.

In a Seller’s Market, work with a Buyer’s Agent

Serious home buyers always work with experienced real estate agents. Because you have to be fast and ready in a seller’s market, working with an agent is of the utmost importance. Getting good advice from someone you trust, working on your and only your behalf is essential to your success. 

Strike with clarity of purpose

Your offer should be well informed and enticing enough to be considered by the seller. Once you have established with the help of your Realtor and through your own experience of viewing homes the market price of the home, offer that or close to that so that you can move from shopping to buying, buying to owning. 

Be prepared to compete in a Seller’s Market

Bidding wars are still common in Kitchener-Waterloo this year, especially in the most sought after neighbourhoods and in the single family homes under $500k category. It is not unusual for prime listing to encounter multiple offers.

Further reading:

How to buy in a seller’s market (2017 edition)

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