The majority of Niagara homebuyers in 2021 who plan to purchase in any of these cities will likely be up against limited housing supply, lots of competition, and the same question on their lips: how do you buy a home in a seller’s market, with the cards stacked against you?
There’s some buying strategies to employ, but before we get into the nitty-gritty of that, let’s define seller’s market conditions:
In a seller’s market, there are more buyers than there are homes for sale. With fewer listings to choose from and more competition, homes typically sell quickly, often seeing multiple offers or even bidding wars, and selling over asking price. In a seller’s market, the seller has the upper hand. This is not the time to test your low-ball offer skills.
In a buyer’s market, there are more homes for sale than there are buyers. Since there is less competition, buyers can take their time shopping the market and have more negotiating power. The price of homes listed for sale can be stable or falling.
In a balanced market, there is an equal number of buyers and sellers, resulting in reasonable offers and average days on market. Less tension between buyers and sellers results in stable home prices
BE INFORMED
Having a handle on market conditions is a key first step in a successful transaction. This is the case regardless of market conditions, but especially if you’re trying to buy a home in a seller’s market. Remember, real estate is very local, so what is happening in one neighbourhood may not be the case in another.
KNOW YOUR BUDGET
In a seller’s market, you may only get one chance – and it’s not always about the money. A real estate transaction can be complicated with a lot of moving parts. With all other things being equal between your offer and someone else’s, one that’s tailored to the seller’s needs (such as a short or long closing) can tip the scales in your favour. Aside from conceding to the seller’s wishes, an offer in a seller’s market should have as few conditions as possible.
BE PREPARED TO ACT FAST
If you’re hoping to buy a home in a seller’s market, you’ll need to take quick and decisive action when you find a property that interests you. This is where all your prep work will pay off.
MAKE A STRONG OFFER
In a seller’s market, you may only get one chance – and it’s not always about the money. A real estate transaction can be complicated with a lot of moving parts. With all other things being equal between your offer and someone else’s, one that’s tailored to the seller’s needs (such as a short or long closing) can tip the scales in your favour. Aside from conceding to the seller’s wishes, an offer in a seller’s market should have as few conditions as possible.
BE PREPARED TO PIVOT
You’re likely already accustomed to this as a key 2020 survival strategy. And if you’re hoping to buy a home in a seller’s market, you’ll need to keep it up. As we all know, market conditions can change on a dime. Have a back-up plan in place, in case you need to delay the purchase – or need to jump on an opportunity sooner than expected!
WORK WITH A PRO
Homebuyers always have the option to handle their transaction on their own, or to work with a professional real estate agent. Working with the Portfolio Realty Group can ease much of the stress associated with finding and buying a home in seller’s market. Some advantages include:
- better access to homes in and out of the local market.
- knowledge of neighbourhoods and market conditions.
- we handle the paperwork – enough said.
- guidance and support in the biggest buying decision of your life.
HAVE THICK SKIN
Last but not least, don’t take rejection personally. Instead, learn from the experience and keep trying. Homebuyers who have been living in persistent seller’s markets know the pain of rejected offers and being “beat” by another buyer. Working with the right real estate agent helps buyers see new listings as soon as they hit the market, so you can jump on “the one” when you find it!
