Buying a Home in a Seller’s Market

It’s no secret that the Coronavirus Pandemic has reshaped the Real Estate world, especially right here in the River Region! According to statewide data distributed by the Alabama Center for Real Estate, Residential home sales are up, pricing is increasing, days on market is down and inventory is low.

Demand within the market is also changing. Many families have realized their need for more space. As a buyer, you may be gravitating more towards single-family dwellings with in-home or in-neighborhood amenities. Buyers are also looking for dwellings that can accommodate multi-generational family units, office and schooling space.

All of these variables create high demand for a very specific type of dwelling.

AND – We’re officially in a seller’s market!

Don’t worry – If you’re looking for a home in the River Region area, our New Waters Realty agents are here to help. We’re including a few tips below to help guide you through buying a home in a seller’s market.

Work on your Pre-Approval First

As always, it’s so important to get pre-approved for a mortgage before starting your home search. It’s especially important in a seller’s market because of bidding wars. In a bidding war, you are presenting your best offer to the seller. Bargaining power, like a pre-approval letter, can help you gain the upper hand when faced with a multiple offer situation.

Don’t Delay

Going through the pre-approval process and scenarios with your mortgage provider can help tremendously once you start your home search with your Realtor. You’ll know exactly what you’re approved for, and be prepared for scenarios that may arise during a bidding war. Sellers are receiving multiple offers in today’s market. You want to be able to offer and respond quickly, which you’ll be able to do with a clearly established budget.

What about Contingencies?

Contingencies are put in place to protect the buyer. But, in a seller’s market, they are extra pieces to a puzzle that could be simplified by accepting another offer. Offering non-price factors, such as forgoing either your loan, appraisal or inspection contingencies can shorten the period between offer and sale. But, be aware, this absolutely creates more risk for you, the buyer.

Hire a Real Estate Agent

A Real Estate Agent has expert negotiating skills and up-to-the-minute access to listing information. Our expert team of agents is ready to help you find your new home! Contact us today!