Scott Miller's Blog
A seller's market poses a challenge for any buyer - when there are more buyers competing for homes than there are homes in market, you have to be ready to move swiftly when you find a home you like. Since the inventory of luxury homes is usually small when compared with more conventional homes on the market, a seller's market could make it more difficult to get the home you want, even if your financial details are in order and you're ready to buy.
What is a Seller's Market?
A seller's market simply means that there are more people who want to buy a home than there are homes for sale. When this happens, homes can move very swiftly -- some will sell within days of listing -- and buyers need to be able to offer appealing contracts to secure a home. While the luxury market often contains a smaller inventory, there are also fewer buyers competing for homes, but the market can still favor sellers.
Tips for Buying a Luxury Home in a Seller's Market
Visit in Person: Your real estate agent can help narrow down the possibilities and you can even send someone ahead to take a first look for you -- but you should view the home sooner rather than later if you want to see it in person before you buy. Luxury homes in high end vacation destinations can go very quickly in a sellers market, so you may not have the amount of time you are used to for viewing the property.
Streamline the Process: Work with your luxury real estate agent to prepare a compelling offer that is free of contingencies, or as free as it can be. The fewer conditions you have and the easier you are to deal with, the more likely it is the seller will accept your offer. Offer a swift and easy closing, request no contingencies and be ready to go swiftly when you find the home you want.
Have Financing in Place: If you need a mortgage, you should have your details worked out and ready to go. A seller with an advantage will be reviewing multiple offers and yours should indicate there will be no delays in closing. If you are a cash buyer, the funds should be available in time for closing; make preparations early and assume you will need to close within a month.
Be Prepared to Pay Full Price: The most common impact of a seller's market is that homes sell for the asking price -- or even more than the list price. Your agent can help you determine if a full price offer is right, or if you should even consider offering above the selling price. This is most likely in a hot market where homes are selling as soon as they list. If the home is still available after a week on the market, a full price offer may not be needed, if everything else is in order.
Make the most of the process by working with a skilled agent who is familiar with the complexities and demands of the luxury market. They will be more adept at helping you find and secure the property you want than a conventional agent. When you do find a home you like, be ready to act quickly so it does not get away; these steps will help ensure you don't miss out on a property you love.
Whether you’re buying a house or selling a home, the smartest move you can make is to hire a real estate agent to represent your interests. But before you do, take these important steps so you can be best prepared for the next stages.
Have An Idea Of What Kind Of House You Want To Buy
If planning to purchase a new house, prepare for your real estate agent interview by figuring out what kind of house you’re interested in. For this, you’ll want to familiarize yourself with the various house style terms, like ranch, colonial, craftsman, Tudor, etc. Knowing these terms and knowing what you want will enable you and your agent to communicate easier, and your agent will be able to more quickly find the kind of homes you’d be interested in.
Get Your Financing In Order
Nothing’s worse than finding the house of your dreams, only to find out you can’t get approved for a mortgage. Before you do anything else, get your financing in order. Speak to a lender about getting pre-approved for a mortgage. This will let you know how much you’re approved for and how much house you can afford. Your pre-approval status is also a powerful bargaining chip if for some reason you need to compete with other bidders.
Be Ready to Move
If you hire a good real estate agent to sell your house, you could be looking at a closing date just 30 days away. A good agent can have potential buyers ready to close fast. Are you ready for that? Before hiring your real estate agent, make sure you’re ready to move. Have a contingency plan in place if you need to move out quickly, including:
Know Where You Stand With Your Existing Mortgage
You should have a very clear understanding of where you currently stand with your existing mortgage if you’re thinking of selling. You need to know the minimum of what you need to sell your house for so you can make the profit that you hope to gain. Also, go through your mortgage paperwork to ensure there will be no surprises regarding special clauses or contingencies when it comes to selling the house. Depending on the restrictions of your mortgage, there may be caveats as far as transferring title or changing terms.
Ask About the Real Estate Agent’s Track Record
During your interview with a prospective real estate agent, it’s fair to ask them what their track record is. Real estate agents keep tabs on how many houses they’ve bought and sold in any year, so the agent will be able to rattle off their “statistics” for you. Be sure to ask how long their houses stayed on the market, too, since that will reflect on the agent’s salesmanship skills.
These steps will ensure that your real estate experience will be a positive one. Once you’ve gone through these steps, you’ll be ready to hire a real estate agent to buy or sell your home!
Purchasing a home is a life-changing decision, and as such, should not be taken lightly. Fortunately, there are lots of things you can do to prepare for the homebuying journey, such as:
1. Determine Where You Want to Live
There is no shortage of high-quality houses available across the United States. Now, you just need to determine where you want to reside, and you can hone your house search accordingly.
Think about your long-term plans as you consider where you want to live. For instance, if you enjoy life in the big city, you may want to search for houses in or near the city of your choice. On the other hand, if you want to start a family in the near future, you may want to explore residences near parks and other family-friendly attractions.
Ultimately, it helps to narrow your home search to a few cities and towns. Because if you know where you want to live, you can quickly navigate the homebuying journey.
2. Establish a Budget
A budget is a must-have for any homebuyer, at any time. If you know how much you can spend on a house, you can search for residences that fall within your price range.
Oftentimes, it helps to meet with banks and credit unions before you launch a home search. These financial institutions can teach you about different types of mortgages. Then, you can select a mortgage that suits you perfectly.
Don't forget about home inspection, closing and other property buying fees, either. If you account for these property buying costs, you can ensure you have the necessary funds available to cover them.
3. Consult with a Real Estate Agent
A real estate agent is a difference-maker for a homebuyer. He or she is happy to teach a homebuyer about the ins and outs of the real estate market. As a result, a real estate agent will help you become a homebuying expert.
Typically, a real estate agent offers recommendations and insights throughout the homebuying journey. He or she first will learn about you and help you establish homebuying expectations. Next, a real estate agent will help you kick off a search for homes in your preferred cities and towns. When you find your dream residence, a real estate agent will help you craft a competitive offer to purchase this home. And if your offer to purchase is approved, a real estate agent will help you navigate the final stages of the homebuying journey.
Furthermore, a real estate agent can provide assistance any time a homebuyer has concerns or questions. A real estate agent strives to help you make informed homebuying decisions. Thus, he or she will do whatever it takes to educate you about the homebuying cycle and ensure you are ready to find and buy your ideal residence.
Simplify the process of finding your dream home – use the aforementioned tips, and you can prep for the homebuying journey.
Let's face it – there are many risks that you may face during the homebuying journey. From submitting an offer on a house that ultimately proves to be a poor investment to failing to obtain a mortgage due to a bad credit score, there are various issues that may prevent you from achieving your desired results. Lucky for you, we're here to help you focus on the task at hand and eliminate potential risks as you search for your ideal residence.
Now, let's take a look at three tips to help you avoid risks throughout the homebuying journey.
1. Set Realistic Homebuying Expectations
How you search for a home may determine whether you are successful or unsuccessful. For example, if you evaluate houses that fall outside your price range, you may struggle to find a home that you can actually afford. On the other hand, if you establish realistic homebuying expectations from the get-go, you may be able to streamline your house search.
Think about where you want to live and how much you can afford to pay for a home. Also, you should consider home must-haves and wants. With this information at your disposal, you can avoid the risk of missing out on an opportunity to acquire a residence that matches your expectations.
2. Get a Mortgage
Getting pre-approved for a mortgage is pivotal. Because if you obtain a mortgage today, you can enter the housing market with a budget and narrow your house search accordingly. Perhaps most important, a mortgage enables you to avoid the temptation to pursue homes that be priced beyond your budget.
Consult with banks and credit unions, and you can learn about a broad array of mortgage options. Then, you can select a mortgage and kick off your search for your dream residence.
3. Work with a Real Estate Agent
Problems may arise at any point during the homebuying journey. And if you're unsure about how to address these issues, it may be tough for you to acquire your ideal residence. Fortunately, if you hire a real estate agent, you may be able to identify and address homebuying problems before they escalate.
A real estate agent understands the housing market and is happy to share his or her expertise with you. This housing market professional can teach you about the differences between a buyer's and seller's market, help you prepare a homebuying strategy and much more.
Let's not forget about the assistance that a real estate agent can provide as you get ready to submit an offer on your dream home, either. A real estate agent will help you craft a competitive homebuying proposal. Furthermore, he or she will negotiate with a seller's agent on your behalf and do everything possible to ensure you can acquire your dream residence at a budget-friendly price.
Take control of the homebuying journey – use the aforementioned tips, and you can limit risk as you search for your ideal house.
Buying a house can be simple, particularly for those who craft a blueprint before they embark on the property buying journey. Now, let's take a look at three tips to help you craft an effective homebuying blueprint.
1. Analyze the Housing Market
The housing market varies in cities and towns across the United States. However, if you analyze the local real estate sector closely, you can map out a successful property buying journey.
Assess the prices of recently sold residences and find out how long these homes were available before they sold. That way, you can determine whether a buyer's or seller's market is in place.
Remember, the more housing market data you review, the more equipped you'll be to understand the current state of the local housing sector. And if you allocate time and resources to analyze housing market data, you can gain the insights you need to make informed decisions throughout the property buying cycle.
2. Establish Homebuying Criteria
Create a list of homebuying criteria – you'll be glad you did. Because once you know what you want to find in your dream home, you can narrow your house search.
As you put together homebuying criteria, think about where you want to reside too. This will enable you to hone your home search to preferred cities and towns.
Don't forget to consider your short- and long-term plans as you craft your homebuying criteria as well. For instance, if your goal is to work in the city, you may want to focus on houses in or near the city itself. On the other hand, if you plan to start a family soon, you may want to explore residences near the top schools in your area.
3. Collaborate with a Real Estate Agent
If you're unsure about how to craft a homebuying blueprint, there is no need to worry. Real estate agents are available nationwide, and these housing market professionals can help you put together a homebuying plan.
A real estate agent is a housing market expert who is happy to teach you everything you need to know about buying a residence. He or she also will respond to any of your homebuying concerns and questions.
In addition, a real estate agent will act as a guide along the homebuying journey. He or she first will learn about your homebuying criteria and goals and help you put together a property buying plan. Next, a real estate agent will help you search for your dream residence and set up property showings. And once you discover a house you want to buy, a real estate agent will help you submit a competitive offer to purchase this home.
For those who want to achieve the optimal results during the property buying journey, it generally is a good idea to create a homebuying blueprint. By using the aforementioned tips, you can craft a homebuying blueprint so you can achieve your desired homebuying results.