You must be prepared for strong competition when looking to buy your house in a seller’s markets. To put it simply, this is a situation where you would have many buyers competing for a house. In a competitive environment such as this, time is of the essence. Thus, you need to have a clear negotiating strategy and be able to tell which properties are worth competing for. With that said, here are some things to consider when buying in a seller’s market.
Seller decides the rules
It is the seller who decides if they would accept offers individually or have a group present multiple offers before accepting one. As offers are presented to them, sellers are free to accept, counter or reject offers. As a buyer, you may not even be aware of a multiple offer situation especially in case sellers invite offers individually. While it is beneficial for sellers to share this information with buyers, agents cannot divulge this information without the seller’s consent.
Highest price is not always the best
It is true that sellers are typically looking for the best and highest offers. However, what a seller may consider the best offer may have different parameters compared to that of another. There could be a whole host of underlying factors such as a buyer being preapproved for mortgage, closing dates being flexible or buyers willing to take on the inspection costs. Never think that your work is done once you place an offer; in fact, you should only consider that the start of the race.
Never be shy of walking away
It is important that the property you are competing for is actually worth it. There is no point putting in all the hard work for a house that may not suit your needs. So long as the seller does not accept your offer, you are free to revoke it at any point if you so desire. It can be tough to say no to a decent proposition at times, but it can often lead to other better possibilities.
Buying can be a tough process with multiple offers in a seller’s market but these considerations should help you compete with other buyers. If you need more help, get in touch with me for any assistance or advice about buying a house in Greater Boston or the South Shore. Feel free to call me or send me an email or get in touch on Facebook.
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