How to Be a Buyer in a Sellers’ Market
Rogers Healy is the Founder and CEO Rogers Healy and Associates Real Estate, which is one of the most successful independently owned real estate firms in the country. He is also the Founder and CEO of Healy Global Real Estate + Relocation and Healy Property Management. Follow Rogers Healy on Instagram, @rogershealyrealtor, and his personal account, @RogersHealy. Visit RogersHealy.com and RogersHealyMedia.com for more information.
It may seem impossible to get into the real estate market right now, especially as a buyer. Competition is fierce, particularly in the luxury sector of the real estate market. Interstate buyers moving into the area with large budgets aid in driving price points upwards.
Despite the competitive climate we find ourselves in, the time to buy is now if you can be a savvy and creative buyer. Prices will continue to rise, but historically low mortgage rates may not stay low forever. We are at a unique crossroads, observing the “new normal” in the real estate market, and buyers should be prepared to get creative in order to get in on the action now.
As a buyer in this environment, it’s incredibly important to rely on a REALTOR® you trust to get you to the closing table successfully. Over-communicate, ask copious amounts of questions, and never assume anything. Be sure, as a buyer, you are involved in important aspects of the process and know where you stand.
Buyers should expect there to be a multitude of offers on a single property at every price point. These offers are coming in droves the same day properties are hitting the market, or even prior to that in some cases. We are experiencing the lowest inventory we have historically observed.
However, perception is in the eye of the beholder. If buyers are able to make their offer stand out, winning a bidding war is still possible. Obtaining the upper hand requires putting yourself into the mind of the seller. Realizing that sellers will likely become buyers as well is a great starting point.
Being understanding, patient and flexible can give a buyer a leg up in this wild market we’re experiencing. The selling process can be just as taxing as the buying process. In places like Texas, we have option periods where the buyer has the option to terminate the contract. That means sellers don’t have a guarantee that the deal will go through until the transaction is finalized. Other bidders may not be flexible with closing dates or are extremely nit-picky when it comes to inspections–which could ultimately cost them their bid.
There are a multitude of other ways to appeal to the seller. Coming in with a strong offer, even if it may not be the highest offer could appear favorable to the seller under certain circumstances. If a buyer is able to streamline the purchase process, they may appear more attractive to the seller. For example, an offer that could be financed against something that is cash while making your option period shorter could grab the seller’s attention. Offering more option money or being a cash buyer are other creative ways to make your offer stand out.
It is always a good time to buy if you consider the definition of a good deal to be “a deal that makes you feel good.” There is a perfect buyer for every perfect property, so it’s important to not get discouraged in this competitive sellers’ market.
There are a multitude of other ways to appeal to the seller. Coming in with a strong offer, even if it may not be the highest offer could appear favorable to the seller under certain circumstances. If a buyer is able to streamline the purchase process, they may appear more attractive to the seller. For example, an offer that could be financed against something that is cash while making your option period shorter could grab the seller’s attention. Offering more option money or being a cash buyer are other creative ways to make your offer stand out.
It is always a good time to buy if you consider the definition of a good deal to be “a deal that makes you feel good.” There is a perfect buyer for every perfect property, so it’s important to not get discouraged in this competitive sellers’ market.
