Hey Homebuyers! Want to know what it’s like out there? Well…that depends a LOT on YOU. And it’s not just about the realtor you pick, the lender you choose, or the size of your downpayment (all of which are extremely important!) I’m talking about your mindset going into the home-buying process. Are you “looking to score a great deal?” (you won’t find one in this market!) Are you “not gonna pay over-asking?” (well good luck with that!) Are you “never ever ever ever agreeing to waiving a home inspection?” (Well, the OTHER 8 OFFERS will, so one of them will probably get the house, not you!)
It’s a Seller’s Market out there, people, so if you enter into it with ANY type of chip on your shoulder, it most likely won’t end well.
So … just HOW do you BUY in a SELLER’S market without giving up … EVERYTHING?
Start with a Winning Mindset!
Here’s 3 Tips on How to Win in a Seller’s Market:
1. Get inside the Seller’s head! When negotiations get tough, getting MAD at the Sellers will get you nowhere. Instead, try to understand the seller’s position.Think about what they want, and how YOU can give it to them. Are they looking for you to increase your offer price? Well if you were the sellers, you would too. Why not ask your lender if a $5,000 increase will greatly affect your monthly payment. With historically low rates, you might be able to swing it. Are they looking to close sooner? Would they like to close later? Would they like a rent-back option? Find out what they really want and then try to give it to them.
2. For every Problem … there is ALWAYS a Solution! It’s hard to know what problems there will be with a home … but we KNOW there will be something! That is scary, but that’s okay! While I’d NEVER tell you not to request a home inspection, you might be up against other buyers who are willing to waive theirs. What to do? Well, if you know up front that you will encounter a problem or two (or three?) you can be prepared for it. If a home inspection will “weaken” your offer in a bidding war, perhaps you can have one before you write your offer. Or, perhaps you can ask for an “information only” inspection. Perhaps your contractor can join you at the Open House and take a look at the systems and structure. If none of these options are possible, find out as much as possible about the home, the age of the systems, the roof, etc. and then make a decision. You can always have an inspection after you close on the house, but of course then … it’s YOURS.
3. Buying a home is emotional – for the Sellers as well as you! Sellers raised their kids in their home! They made all their memories there! So they may ask crazy things of you! (How dare they!) Sellers won’t think anything is wrong with their homes. (THEY’VE lived there just fine…!) Try to take a deep breath and see things from their perspective. Try to meet them half way. If you become “entrenched” in your position and won’t budge, that will be the beginning of the end. Always be willing to give a little to get a little until you have a deal. Remember … you do not have to be friends with the Sellers, you just have to satisfy them enough so they will sell YOU their home!