How to Win in a Seller's Market

How to Win in a Seller's Market

1) Know the market – It is more important than ever for buyers to know the market. By “know the market” I mean you should be aware of the general price ranges for the area, especially the upper end of the price range.

If you are knowledgeable about what the competition is asking, and what homes have recently sold for, you will be better prepared to make a reasonable offer on the home you want.

2) Develop a winning strategy – Some buyers have the ability to pay for the closing cost or can pay a higher earnest money amount or can can close faster. Talk with your Graham Group agent to develop a winning strategy.

3) Don’t go on hearsay – Make sure that you are working with accurate information. You may hear that someone paid a certain amount for the same or similar house down the street but it’s important to check it out.

If you don’t verify the price of the comp and try to use that information to make an offer on the home of your dreams you could offer too much and end up risking the sale with a low appraisal.

4) Have your financing lined up – I mentioned previously that it’s very important that you should be prepared to make an offer on the spot. The best way to do this is to have your financing lined up so you can pull the trigger when you need to.

If a buyer knows that you have financing to back up your offer they may accept yours over someone else that still needs to get approved for their financing.

5) Request a CMA from your agent – A CMA is typically done by the listing agent to help price the home based on recent and similar sales. They are also helpful for buyer’s agents because they can help the agent in guiding the buyer in making a reasonable offer.

Making an offer in a hot market requires more of a strategy than just throwing out a pie in the sky offer. It requires the buyer and their agent to be informed with accurate market data so their chances of winning a contract and getting a successful appraisal are increased.

Source: Birmingham Appraisal Blog