A seller’s market of any kind is a marketplace in which there are fewer goods available for sale than there are buyers seeking to purchase those goods, which, in turn, usually allows sellers of the goods to dictate the prices. And that’s exactly what we have in the real estate market across the country right now. Inventory is low, demand is high, and prices are rising. With a market like this that favors sellers, buyers need to deploy strategies that will give them a competitive edge. So here are 4 tips for Santa Cruz home buyers in this seller’s market.
1. Start Your Search Early
One of the chief earmarks of a seller’s market is low inventory. Listings are fewer, and more buyers are competing for the fewer homes for sale, which means that homes for sale don’t stay on the market long. So you need to start your home search as soon as possible, being persistent and ready to act quickly.
You also need to get as much information on potential homes as possible, such information as property reports, disclosures, due dates, and so on (another reason to start early). Then pay attention to open house dates and keep your schedule open. An experienced Santa Cruz agent can assist you with this. To discover more, just call 831-588-2334.
2. Get Pre-Approved
You may know without a doubt that you can get a mortgage loan in the amount you need to buy a house, but the seller doesn’t know that. If, however, you get pre-approved for a mortgage, the seller can rest assured that you can get the requisite financing. And this becomes even more important in a seller’s market.
Pre-approval involves your submitting a mortgage application, complete with all the verifying documents, especially all your financial information. Then, after you’ve been pre-approved, you’ll receive a pre-approval letter stating the amount you are qualified to borrow. And then when you make an offer, you can show the pre-approval letter to prove to the seller that you are indeed a serious buyer.
3. Make Your Offer Attractive
Another way for Santa Cruz home buyers to get a leg up in this seller’s market is by making their offer more attractive than the other offers. Multiple offers are common in today’s market, so to make your offer stand out as the most attractive one, you can . . .
- Offer slightly more than the list price
- Offer a larger earnest money deposit
- Avoid requesting favors like the inclusion of kitchen appliances at no charge
- Ask for few or no concessions
- Submit a pre-approval letter with your offer
4. Be Flexible With Your Timeline
Being flexible with your timeline, especially with respect to closing and taking possession/moving in, can also give you an advantage in this seller’s market. Here’s an example . . .
It often happens that a seller needs to remain in her home after the close of escrow – and, to make your offer the best one, you can allow her to do that. Such an arrangement is referred to as “rent-back” or “lease-back.” The standard period of time for the seller to remain in the home is usually 29 days or less. This allows the seller to find or move to the new home at a more leisurely pace.
There are some risks here, so be sure to consult your Santa Cruz agent at 831-588-2334 before entering into such an arrangement.
And Work With a Local Santa Cruz Agent
Perhaps the most important step Santa Cruz homebuyers can take in a competitive seller’s market is to work with an experienced local agent. Local markets can vary considerably, and what works in one may not work in another. Your Santa Cruz agent can help you with the best bidding practices for the neighborhood you’re interested in. So if you want to improve your chances of getting the home you want and need in this seller’s market, don’t hesitate to contact us today at 831-588-2334.
