The demand for homes in Utah is rapidly rising, making our state a hotbed for selling residential properties. In fact, we are smack dab in the middle of a seller’s market. This means a lower home inventory than ever, properties are selling faster and for higher prices, and it is a very competitive space for those looking to buy.
In short, buying a home right now can prove difficult. Luckily, we have your back. Pulling from our year’s of experience, we’ve compiled the top five mistakes we see buyers make in a seller’s market and have tips on how to avoid them.
Mistake #1: Not being pre-approved to purchase a home
Pre-approval from a reputable mortgage lender is crucial in a seller’s market. It shows sellers that you are serious about purchasing the home and that you are ready to seal the deal should they accept your offer. Having pre-approval also informs you, as the buyer, of the price range you should be looking in when searching for your new dream home. The mortgage lenders we work with are able to provide financing at the lowest rates possible and help you meet your home buying goals.
Mistake #2: Thinking you can do it by yourself or hiring an inexperienced agent
Obviously, we are advocates for partnering with an experienced real estate team but not utilizing the expertise of a seasoned agent (one who’s been through a seller’s market before) is detrimental to your home buying goals in a seller’s market. Agents can pull from their expertise to ensure you are ready to buy and are getting the best deal possible for the home you’d like to purchase. They know all the ins and outs to help you get a home before it’s off the market. Also, in a seller’s market, seller’s can afford to be choosy and many would prefer to avoid working with a novice and the pitfalls that may contain.
Mistake #3: Waiting too long to make an offer
You should definitely think about it when you are buying a home but in a seller’s market, you need to do your thinking beforehand. Prepare yourself with a list of home must-haves, your price point, and more to ensure that when the right home comes along you are ready to make an offer. We are seeing homes placed on the market and receiving an offer in as little as a few hours. Hesitation could cost you your dream home.
Mistake #4: Low-balling your offer
We all want a great deal when we purchase a home but low-balling in a seller’s market guarantees you’ll lose the home to someone who is willing to offer a competitive price. Utilize your agent’s expertise to place a competitive offer.
Mistake #5: Ignoring seller’s preferences
Want your offer to be chosen over all others? Beyond being willing to pay a competitive price, consider appealing the to seller’s preferences. Does the seller want to be out of the home by a certain time? Are they looking to sell the home as is? Ask your agent to consider and list the seller’s preferences in the offer/contract so counteroffers aren’t necessary. This saves the seller time and makes them more likely to accept your offer on the home.
Are you looking to buy in this seller’s market? If so, let us help you navigate the rough waters ahead, avoid the mistakes, and allow you to unlock life’s biggest moment. Contact us today.