If you don't already know, we're currently in what's called a "Seller's Market" and are set to remain in this marketing territory until the end of 2021.
This is excellent news if you already own a home and are considering selling it. However, those who are planning to buy a home this year, particularly their first home, may find it challenging.
So, how do you navigate a seller's market? Here's everything you need to know.
What is a seller's market?
In a seller's market, there are more buyers than there are properties for sale. With fewer listings to choose from and more competition, homes typically sell quickly, with multiple offers, bidding wars, and selling over the asking price.
In a seller's market, the seller has the upper hand.
So, how do you buy a home in a seller's market?
The first step is staying informed by keeping up to date on the current market conditions and remembering, real estate is very local, so what is happening in one neighbourhood may not be the case in another. This is when it's critical to have an agent on your side who knows the local market inside and out.
Also, keep your budget in mind and be prepared to act fast when you find a home you're interested in! Ask yourself the following question, "how much can I realistically spend on a new home?" Be sure to take into consideration your lifestyle and what sacrifices you're willing to make.
Pro tip: Get pre-approved for a mortgage. This will allow you to act quickly and lock in the current interest rate for up to 120 days.
Lastly, make a STRONG offer. In a seller's market, you may only get one chance, and it's not the time to test out your bartering skills. Also, try to cut down on conditions. If your offer and someone else's offer are matched, but you have a ton of conditions, and the other prospective buyer does not, then they will have the upper hand.
By working with a Buyer Agent, they will advise you on handling the transaction and ease the stress associated with finding and buying a home in a seller's market. They'll also have better access to homes in and out of the local market, knowledge of neighbourhoods, market conditions, and negotiating skills, plus they'll handle the paperwork!
I hope that you found this blog helpful and informative. This is just a short summary of how to navigate a seller's market, so if you have any further questions about the current market, please feel free to reach out by clicking here! I can answer all your questions and concerns and make the whole process as stress-free as possible.