With the spring sales season just beginning, buyers enter the real estate market at the most interesting of times.
Many dynamics come into play this year with a focus on fluctuating mortgage costs and the National Association of Realtors predicting values to move 6% higher during 2023.
In the current market there is cautious buyer optimism, coupled with a seller motivation that’s far from desperate. America’s property inventory, the number of houses for sale, continues to yo-yo.
Low-ball offers are unlikely to deliver a bargain, but you’ll probably have the luxury of time to negotiate and make considered decisions. Certainly, we’re not seeing the buyer exuberance that drove values 20%+ higher in the past couple of years.
Nevertheless, spring brings out sellers.
So, you should notice an increase in properties coming onto the market, and that’s good news for your negotiation position and the breadth of choice available to you.
Well-presented properties will garner the most buyer interest, and you’ll probably face some competition for them.
If you are looking to buy in the spring market, these strategies may be helpful.
First big decision
With the market at such a fascinating point, you’ll need the best agent at your side. They will know the neighborhood price trends, a range of suitable properties for you and how to negotiate to win your desired home. Because you’ll be buying in spring, make sure they have the bandwidth to give you the focus you deserve.
Always research
Do your homework on the types of property you intend to target. A Comparative Market Analysis will help guide you on price trends.
Organize your money
Even though the boom is over, you can still miss out on great opportunities because you were slow to respond. So, get your loan pre-approved to ensure you can act quickly when you see your next dream home.
Earnest money
Have a small amount of cash on hand to use as earnest money. That’s around 1% of the asking price to demonstrate your genuine interest in buying. It’s not a deposit and does not legally bind either party. Your earnest money is deducted from the price when you settle.
Making an offer
Don’t worry about how much the seller wants for their property. Instead, focus on market value. You should be able to justify any serious bid by citing the market analysis.
Leave headroom
Even if you love a property, don’t commit all your money in your first offer. Leave room to negotiate a price 5% to 10% above your initial offer.
Price isn’t everything
Sometimes, owners will take a lower price if you’re prepared to cut a deal quickly or give them additional time to find their next property. So, not everything is about money when you negotiate.
Walk away
Sometimes, negotiations with the seller don’t work out. Do not be afraid to walk away. There are always other properties. It may not seem like it at the time, but it’s true.