A seller's market in the housing industry occurs when more people are looking to purchase a home than there are homes on the market, putting sellers in a position where they choose between different offers. In this situation, you will want to employ a few strategies that allow your offer to stand out.
Write a Clean Offer
First, you are going to want to write a clean offer. Your offer should not have financial constraints on it, such as the requirement that another property is sold for you to purchase the property. The offer also shouldn't have seller concessions, where you ask the seller to help you with closing costs.
Financial and seller constraints and concessions will not fly when a seller is looking at multiple offers. You want to ensure you are putting forward a clean offer that doesn't ask the seller to make an exception or do something special for you.
Don't Ask for Personal Property
Some people view a home and fall in love with something that is listed as an exclusion. If the seller took the time to list an item as an exclusion on the contract, it is because that item means something to them and is something that they want to keep for themselves.
Don't ask the seller to give you something that you know is on the exclusion list for the property. Instead, take a picture of the item and find the same or similar item on your own. Don't let a fixation with the seller's personal property derail your offer to purchase a home.
Offer a Little Above Asking
Offering a little bit above asking, even just a couple of thousands of dollars will let the seller know that you are really interested in the home and that you want to win any bidding war. It shows that you want to purchase the home without adding too much to your mortgage and without requiring you to pay that much more out of pocket. This is a good way to make your offer stand out.
Always Add a Personal Touch
Writing a shorter personal letter to the seller is a classic way to add a personal touch to your offer and turn you into more of a person in the seller's eyes. This is particularly effective if the seller is emotionally attached to their home. Adding a short personal letter, where you share a little information about yourself and what you like the home and want to live there, could be what scores you the home you really want.
In a seller's market, you want to get your offer right the first time. Write a clean offer without any contingencies and avoid asking for personal property on the exclusion list; both of these actions can distract from your offer. Pay a little extra for the property to show you want it and add a personal letter to connect with the seller. These four little strategies may help you be more successful when searching for homes for sale in a seller's marketplace.Share