Everyone in the world seems to be looking for property in Parker County right now. For sellers, this is a good thing. The old "supply and demand" economic principle swings the pendulum in their favor, as prices tend to rise when supply is low. But as a buyer, being prepared is the best way to ensure you have a shot at buying your dream home. Here are our top five tips for snagging the contract you want in a seller's market.
1. Be pre-approved and choose a budget, then stick to it!
A pre-approval letter is given to buyers giving them an idea of the amount of money lenders are willing to give them based on several factors. Once you know this amount, you then want to look at a budget that includes your other expenses, such as utilities, taxes and insurance, etc. Knowing what you can afford keeps you from getting into a bidding war you can't compete in, and from buying a home at a price you might not be able to afford.
2. Make a list of wants vs. needs
Some things can be changed or upgraded in a home, but other things, like school district obviously will stay the same. When looking for a home in a seller's market, make sure and keep these things in mind. Don't get anxious to buy just because you know the home will go under contract soon.
3. Be ready to make quick decisions
Homes go on the market and sometimes within hours have a contract. If you, as a buyer, run across a house that checks off everything on your list (or enough things - see #2 above) you should be ready to pull the trigger quickly. Don't hesitate to submit an offer, or you may not get a chance at the house.
4. Limit contingencies and submit a reasonable offer
It's hard to think about losing money because you over bid, but in a seller's market, the seller is looking for the most attractive offer, and low bidding may give them a bad taste. Also, it may be more important to the seller that you can close quickly, or that you have fewer contingencies rather the highest bid if you are in a multiple bid situation.
5. Use a Realtor!
Work with someone who is familiar with your local market (ahemmm... us!) We have knowledge about the market, what properties are worth, and can give you the edge in a seller's market. Plus, for a buyer, a realtor costs you nothing! Seller's are responsible for compensating realtors!
