Buyer's FAQ's in a Seller's Market

If you read our last blog about what a seller’s market is, you know that being a potential buyer in that market has some particular challenges and considerations that make the process pretty competitive. 

The Real Estate Market is a marketplace where there are dealings and competition. It changes with economic, political and societal impacts. When it is a Seller’s Market, sellers are getting some very strategic advice on how to get the most money for their investment and how to navigate things like pricing advice, bidding wars and multiple offers. 

Buyers beware!

You are in a tough place that can be discouraging and exhausting. It can take a toll on you physically, emotionally and mentally. 

But it doesn’t have to be that way. 

It could be argued that being a potential buyer is equally challenging to navigate, and your trusted realtor is feeling it all along with you. Many people ask us if they should buy now or wait it out to get a better market experience and value in their investment. 

Here are the five most common questions we get from potential buyers during a Seller’s Market:

Should we wait out a Seller’s Market?

Wondering if you should wait it out is sometimes not a choice in the case of finances, relocation or employment. If you are not required to move, you may be sitting on the idea of upsizing or downsizing. You have your reasons why you want to. Our answer is pretty simple: Life is short, so live your best life every day. However, that doesn’t mean you should lose money or be financially negligent! We understand it is your most significant investment, but choosing to wait out a Seller’s market could take years and values may slow down their elevating prices but won’t likely go down. 

If we find a house we love, what’s the best strategy?

That’s easy. Don’t wait to make an offer! And make it a good offer. If a seller’s market is in play, that means that there are more buyers than sellers, so the chance of it being on the market for long is slim. The competition amongst buyers will be aggressively heightened so, as tempting as it is to throw out a low ball offer, a seller’s market is not usually an effective time to use that strategy. Having a clean and quick offer, backed by a trusted realtor to help you navigate and advise you on the best steps, is the most effective way to get your dream home. 

Should we enter into a bidding war?

You may find yourself in a situation where there are multiple offers on a property. This can be stressful! Prospective buyers should have clear boundaries and rules they have created together on what they are willing to offer as their best price and with no conditions (or as few as possible) if you want that house. That being said, bidding wars are not for everyone, even sellers, so you need to assess with your realtor’s market research to ascertain if it is priced low for a bidding war or priced reasonably. 

Do offer letters work? 

To influence a seller emotionally, a buyer may choose to write a letter to confirm their desire to purchase their home. If you have a clear and genuine desire to see that house as your home, a letter expressing that may help. Tell them what you love about it and what you envision for your own life and family if you were able to live there, including how well you will take care of it.  In the end, most sellers want the most money possible for their investment so if you are competitive with your price point, your letter may be the tipping point in your favour and set you apart from other offers. 

Is buying a house in a seller’s market a recipe for getting discouraged? 

It doesn’t have to be! A positive mindset is a powerful thing and will greatly support you when navigating a home buying process. Because let’s face it! It can be an emotional rollercoaster! It may be tough to be optimistic all the time. Support from your partner and realtor to adopt a attitude that the right home for you will come is a powerful visualization. It works to keep prospective buyers from getting too emotionally attached or discouraged when you get back to square one.  

If you are a prospective buyer in a seller’s market, we know you are in a unique situation. Most of our clients experience greater joy and meaningful process when they are well-informed of the process and market when they are scouting their next home. It is so important to have an experienced expert in your corner to help you get the first news of potential listings and get you to homeownership in a speedy and stress-free way.