Strategies for Landing the Property You Want in a Seller’s Market
By Leslye Fligor, LandVest | Christie’s Int. RE
Let’s face facts—the spring market in our area is set to be more competitive than ever. With more buyers than sellers, inventory is tight. A couple of factors are contributing to this. First, there’s a shortage of new developments, with most new construction coming from tear-downs. Second, many homeowners aren’t moving, especially if they secured low mortgage rates in previous years.
To maximize your chances of finding an affordable home in this challenging market, here are seven tips:
1. Look for homes that have been on the market for longer than 30 days
Well-priced properties typically go under contract within two weeks. If a home lingers on the market, buyers begin to wonder why it hasn’t sold. As a general rule of thumb, for every 15 days a property remains on the market, we can usually negotiate 2-3% off the asking price. Once a home hits the 30-day mark, sometimes a discount of 5-10% may be possible.
2. Stay away from turnkey homes and extreme fixer-uppers
Buying a house that needs some work can save you money, but beware of properties requiring a gut renovation, which are costly, complex, and time-consuming—epecially with rising prices for everything from materials to labor. Instead, look for a structurally sound home that only needs cosmetic work, such as replacing carpet with hardwood floors, upgrading appliances and fixtures, and refreshing paint colors for a modern look.
3. Explore alternatives to traditional single-family homes
Consider a condominium or townhome, where HOA fees cover exterior maintenance, reducing upkeep responsibilities. Alternatively, consider multi-family homes or properties with an accessory dwelling unit (ADU), allowing you to live in one unit, while using rental income from the ADU to help pay the mortgage.
4. Keep an open mind when it comes to architectural styles
While a ranch house, for instance, may not be your first choice, it could be a more affordable option now with the potential to expand into a two-story colonial in the future. Prioritize the town(s) you want to live in and the quality and location of the lot.
5. Consider putting an offer on a house that is “contingent”
In real estate, a contingent home means the seller has accepted an offer, but the sale isn’t final yet. Occasionally, these deals fall through, putting the house back on the market. Have your broker submit a backup offer on a contingent property, giving you the first opportunity to secure the home if the original deal falls apart.
6. Buy a home from a foreclosure auction
When homeowners default on loans, lenders may sell the homes at foreclosure auctions, often at lower prices than the open market as the lender’s priority is covering their costs, not making a profit. However, strict rules apply, so being well-informed and prepared is key.
7. Know that the highest offer doesn't always win
Sometimes buyers see the buzz at an open house and feel there’s no chance of outbidding the competition. However, don’t walk away! Put your best offer in and remain as flexible as possible with terms and contingencies. The highest offer can sometimes fall through, and some sellers may value something other than top dollar—such as flexibility on when they move.
Maximize your buying opportunities in this tight sellers' market by expanding your thinking! By taking into consideration the tips above, you just might land the property you are seeking.
